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Chameleon Company Requirement1 Debit Credit

The document records various transactions involving notes receivable and accounts receivable for Chameleon Company between June 2016 and December 2016. It records the issuance of notes receivable in exchange for cash, and the subsequent collection or discounting of those notes receivable. It also records the accrual of interest income on the outstanding receivables.

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Anonn
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5K views3 pages

Chameleon Company Requirement1 Debit Credit

The document records various transactions involving notes receivable and accounts receivable for Chameleon Company between June 2016 and December 2016. It records the issuance of notes receivable in exchange for cash, and the subsequent collection or discounting of those notes receivable. It also records the accrual of interest income on the outstanding receivables.

Uploaded by

Anonn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Chameleon Company

Requirement1 Debit Credit

Jun-01 Notes receivable 5,000,000


Sales 5,000,000

Jul-01 Notes receivable 6,000,000


Accounts receivable 6,000,000

Cash 5,047,000
Interest expense 3,000
Liability for note receivable discounted 5,000,000
Interest income 50,000

Principal 5,000,000
Interest (5m*12%*90/360) 150,000
Maturity value 5,150,000
Discount (5,150,000*12%*30/360) 103,000
Net proceeds 5,047,000

Principal 5,000,000
Accrued interest receivable (5m*12%*30/360) 50,000
Carrying amount of NR 5,050,000

Net proceeds 5,047,000


Less: Carrying amount of NR 5,050,000
Interest expense 3,000

Jul-16 Cash 6,008,500


Interest expense 16,500
Liability for note receivable discounted 6,000,000
Interest income 25,000

Principal 6,000,000
Interest (6m*10%*60/360) 100,000
Maturity value 6,100,000
Discount (6,100,000*12%*45/360) 91,500
Net proceeds 6,008,500

Principal 6,000,000
Accrued interest receivable (6m*10%*15/360) 25,000
Carrying amount of NR 6,025,000
Net proceeds 6,008,500
Less: Carrying amount of NR 6,025,000
Interest expense 16,500

Aug-30 Liability for note receivable discounted 6,000,000


Notes receivable 6,000,000

Accounts receivable 5,170,000


Cash (5,150,000+20,000) 5,170,000

Liability for note receivable discounted 5,000,000


Notes receivable 5,000,000

Dec-30 Cash 5,376,800


Accounts receivable 5,170,000
Interest income (5,170,000*12%*4/12) 206,800
Requirement2 Debit Credit

Jun-01 Notes receivable 5,000,000


Sales 5,000,000

Jul-01 Notes receivable 6,000,000


Accounts receivable 6,000,000

1 Cash 5,047,000
Loss on discounting 3,000
Notes receivable discounted 5,000,000
Interest income 50,000

16 Cash 6,006,500
Loss on discounting 16,500
Notes receivable discounted 6,000,000
Interest income 25,000

Aug-30 Notes receivable discounted 6,000,000


Notes receivable 6,000,000

Accounts receivable 5,170,000


Cash 5,170,000

Notes receivable discounted 5,000,000


Notes receivable 5,000,000

Dec-30 Cash 5,376,800


Accounts receivable 5,170,000
Interest income (5,170,000*12%*4/12) 206,800

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