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Problem
Journalize all transactions for Rural Beginnings Rural Beginnings. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)
2011
Dec. 66 Received a $7,000, 60-day, 66% note on account from Dark Star Music Dark Star Music. 31 Made an adjusting entry to accrue interest on the Dark Star MusicDark Star Music note. 31 Made a closing entry for interest revenue.
2012
Feb 4 Collected the maturity value of the Dark Star MusicDark Star Music note.Jul. 1 Loaned $14,000 cash to Pop MusicPop Music, receiving a 6-month, 5% note.Oct. 2 Received a $2,600, 60-day, 5% note for a sale to Voice Publishing Voice Publishing. Ignore cost of goods sold.Dec. 1 Voice PublishingVoice Publishing dishonored their note at maturity; wrote off the note as uncollectible, debiting Allowance for uncollectible notes. 30 Collected the maturity value of the Pop MusicPop Musicnote.
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