Joe's Supply Co

question 115

Essay

Joe's Supply Co. has the following transactions related to notes receivable during the last 2 months of 2018.
Nov. 1 Loaned $20,000 cash to Sara Rondelli on a 1-year, 12% note.
Dec. 11 Sold goods to Phair, Inc., receiving a $11,700, 90-day, 8% note.
16 Received an $12,000, 6-month, 9% note in exchange for Grace Tanner's outstanding accounts receivable.
31 Accrued interest revenue on all notes receivable.
Instructions
(a) Journalize the transactions for Joe's Supply Co.
(b) Record the collection of the Rondelli note at its maturity in 2019.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.

Profitability

The ability of a business or activity to generate income in excess of its expenses, resulting in a profit.

Change Documentation Process

A systematic approach to recording, managing, and implementing changes in a project to ensure traceability and compliance.

Time Needed

The duration required to complete a task, project, or process.