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Singletary Company had the following select transactions.
Apr. 1, 2010 Accepted Wilson Company's 1-year, 12% note in settlement of a $20,000 account receivable.July 1, 2010 Loaned $25,000 cash to Richard Dent on a 9-month, 10% note.Dec. 31, 2010 Accrued interest on all notes receivable.Apr. 1, 2011 Received principal plus interest on the Wilson note.Apr. 1, 2011 Richard Dent dishonored its note; Singletary expects it will eventually collect.
Instructions
Prepare journal entries to record the transactions. Singletary prepares adjusting entries once a year on December 31.
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