Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2,500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed. -

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2, 500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed.
Prepare the journal entries needed for Green
Grass Co. to record the following
transaction. The year end is December 31.
On November 15, 2017, Green Grass Co.
agreed to accept $500 in cash and a $
2,000, 90 day, 8% note receivable from Blue
Company to settle its $2,500 past due
account. a) Record the entry on November
15 b) On December 31 (46 days of interest
$20.16 has been accrued, record the
adjusting entry needed to show this). c) On
the date of maturity (February 13 assuming
the note was paid with 90 days interest - $
39.45 total). Record the entry needed.
-
Transcribed Image Text:Prepare the journal entries needed for Green Grass Co. to record the following transaction. The year end is December 31. On November 15, 2017, Green Grass Co. agreed to accept $500 in cash and a $ 2,000, 90 day, 8% note receivable from Blue Company to settle its $2,500 past due account. a) Record the entry on November 15 b) On December 31 (46 days of interest $20.16 has been accrued, record the adjusting entry needed to show this). c) On the date of maturity (February 13 assuming the note was paid with 90 days interest - $ 39.45 total). Record the entry needed. -
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