Prepare general journal entries for the Knapp Computers Company for the following transactions:

Aug. 31 Received a $20,000, 2 month, 9% note from Barber's Accounting Service in settlement of its account.
Sept. 30 Recorded the adjustment for interest.
Oct. 31 Barber paid the note and interest at maturity.

What will be an ideal response?

Answer:
Aug 31 Notes Rec., Barber 20,000
Accounts Rec., Barber 20,000

Sept 30 Interest Receivable 150
Interest Income 150

Oct 31 Cash 20,300
Interest Receivable 150
Interest Income 150
Notes Rec., Barber 20,000