Elburn supply co. has the following transactions related to notes receivable during the last 2 months of 2017. the company does not make entries to accrue interest except at december 31. nov. 1 loaned $18,600 cash to manny lopez on a 12-month, 10% note. dec. 11 sold goods to ralph kremer, inc., receiving a $47,250, 90-day, 8% note. dec. 16 received a $58,200, 180 day, 8% note in exchange for joe fernetti’s outstanding accounts receivable. dec. 31 accrued interest revenue on all notes receivable. a. journalize the transactions for elburn supply co. (use 360 days for calculation. record journal entries in the order presented in the problem.)b. record the collection of the lopez note at its maturity in 2018.

November 1

Loaned $18,600 cash to Manny Lopez on a 12-month, 10% note.  

December 11

Sold goods to Ralph Kremer, Inc., receiving a $47,250, 90-day, 8% note.  

December 16

Received a $58,200, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.

December 31

Accrued interest revenue on all notes receivable.

How to calculate interest:

Lopez:  $18,600 x 10% x 2/12 = $300

Kremer: $47,250 x 8% x 20/360 = $210 (using a 360-day year; 20 days)

Fernetti: $58,200 x 9% x 15/360 = $218.25 (using a 360-day year; 15 days)

Total $728.25

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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answer founder's agreement;