Remington Company Had the Following Select Transactions

question 28

Essay

Remington Company had the following select transactions.
Apr. 1, 2010 Accepted Carter Company's 1-year, 12% note in settlement of a $30,000 account receivable.
July 1, 2010 Loaned $20,000 cash to David Pratt on a 9-month, 10% note.
Dec. 31, 2010 Accrued interest on all notes receivable.
Apr. 1, 2011 Received principal plus interest on the Carter note.
Apr. 1, 2011 David Pratt dishonored its note: Remington expects it will eventually collect.
Instructions
Prepare journal entries to record the transactions. Remington prepares adjusting entries once a year on December 31.

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Definitions:

Reporting Period

The specific time frame for which financial performance is measured and reported in financial statements.

Unpaid Contributions

Amounts due to a fund or organization, such as a pension or insurance plan, that have not been paid by the deadline.

Long Service Leave

An employee benefit that grants extended paid leave for workers who have been with their employer for a long period.

Nominal Value

The face value of a bond or stock, which is the amount paid at maturity, not necessarily its current market value.