Vandiver Company had the following select transactions
| Apr. 1, 2019 | Accepted Goodwin Company's 12-month, 12% note in settlement of a $30,000 account receivable. |
| July 1, 2019 | Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note. |
| Dec. 31, 2019 | Accrued interest on all notes receivable. |
| Apr. 1, 2020 | Received principal plus interest on the Goodwin note. |
| Apr. 1, 2020 | thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. |
Instructions
Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31.
Solution
Vandiver Company
Journal Entry
Journal Entry
