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Great Plains Supply Co

question 88

Essay

Great Plains Supply Co. has the following transactions related to notes receivable during the last 2 months of the year.
Nov. 1 Loaned $75,000 cash to B. Benson on a 1-year, 8% note.
Dec. 11 Sold goods to Roswell, Inc., receiving a $9,000, 90-day, 7% note.
16 Received a $20,000, 6-month, 9% note to settle an open account from M. Ling.
31 Accrued interest revenue on all notes receivable.
Instructions
Journalize the transactions for Great Plains Supply Co.


Definitions:

Trial Balance Preparation

The process of summarizing all the financial transactions in a company's general ledger accounts to ensure debits equal credits.

Account Balance

The amount of money in a financial repository, such as a checking account or investment account, at any given time.

Posting Omitted

An error occurring when a financial transaction is not recorded in the appropriate ledger, potentially affecting financial statements.

Trial Balance Preparation

The process of compiling the balances of all ledger accounts into a report to verify that the total of debit balances equals the total of credit balances, indicating correctly recorded transactions.

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