Question - ABC Co. accepted a $30,000, 3-months, @10% p.a. note from XYZ Co. as settlement of an outstanding A/Rec on December 1, 2015. Prepare the general journal entries for the following transactions. 12/1/2015 Record receipt of a note. 12/31/2015 Prepare accrual adjusting entry for interest revenue. 3/1/2016 Record receipt of full payment from ABC Co. for outstanding note and interest. 2. ABC Co. purchased an $10,000 equipment signing a 8 month, 12% note on 2/15/2016. 2/15/2016 Record issuance of a note. 10/15/2016
Record full payment of the note.