Prepare General Journal Entries for the Following Transactions of This

question 80

Essay

Prepare general journal entries for the following transactions of this company for the current year:
Dec. 13 Accepted a $8,000, 60-day, 9% note dated December 13 in granting Faith Renee a time extension on her past-due account receivable.
31 Prepared an adjusting entry to record the accrued interest on the Renee note.

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Definitions:

Deficit

The amount by which expenses surpass income or revenues, resulting in a loss.

Retained Earnings

Profits that a company has reinvested in itself rather than paying out to shareholders as dividends.

Comprehensive Income

This term includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.