Vance Company accepted a 12-month, 7% promissory note from a customer, Adams Company, on September 1, 2013, in exchange for $12,000 of services that Vance performed. Prepare general journal entries for the following:
a) acceptance of the note on September 1, 2013
b) accrual of interest on December 31, 2013
c) collection of principal and interest on August 31, 2014

Question

Quizplus · Accepted Answer

The Answer of Vance Company accepted a 12-month, 7% promissory note from a customer, Adams Company, on September 1, 2013, in exchange for $12,000 of services that Vance performed. Prepare general journal entries for the following:
a) acceptance of the note on September 1, 2013
b) accrual of interest on December 31, 2013
c) collection of principal and interest on August 31, 2014

Vance Company Accepted a 12-Month, 7% Promissory Note from a Customer