Vandiver Company had the following select transactions.
|
Apr.1, 2014
|
Accepted Goodwin Company"s 12-month, 12% note in settlement of a $30,000 account receivable.
|
|
July1, 2014
|
Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note.
|
|
Dec. 31, 2014
|
Accrued interest on all notes receivable.
|
|
Apr.1, 2015
|
Received principal plus interest on the Goodwin note.
|
|
Apr.1, 2015
|
Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect.
|
Instructions
Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31.