Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 21

Recording Note Receivable Transactions
RecRoom Equipment Company received an $8,000, six-month, 6 percent note to settle an $8,000 unpaid balance owed by a customer. Prepare journal entries to record the following transactions for RecRoom. Rather than use letters to reference each transaction, use the date of the transaction.
a. The note is accepted by RecRoom on November 1, 2012, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
b. RecRoom adjusts its records for interest earned to December 31, 2012.
c. RecRoom receives the principal and interest on the notes maturity date.