Problem:
Mexico Supply Co. has the following transactions related to notes receivable during the last 2 months of 2005.
Nov. 1 Loaned $18,000 cash to Norma Hanson on a 1-year, 10% note.
Dec. 11 Sold goods to John Countryman, Inc., receiving a $6,750, 90-day, 8% note.
16 Received a $4,000, 6-month, 9% note in exchange for Bob Shabo's outstanding accounts receivable.
31 Accrued interest revenue on all notes receivable.
Instructions:
(a) Journalize the transactions for Mexico Supply Co.
(b) Record the collection of the Hanson note at its maturity in 2006.