Question

journal entry worksheet
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received lees payment for principal and interest on the note dated december 13. assume no reversing entries were prepared.
note: enter debits before credits.
date general journal debit credit
january 27 interest expense
interest receivable

Explanation:

Step1: Identify accounts affected

When receiving payment for principal and interest on a note, cash is received (an increase - debit), the principal amount reduces the notes receivable (a decrease - credit), and the interest part needs to account for interest receivable (if previously accrued) and interest income (for the current - period interest).
Debit: Cash (for the total amount of principal and interest received)
Credit: Notes Receivable (for the principal amount)
Credit: Interest Receivable (for the accrued interest)
Credit: Interest Income (for the interest earned in the current period that was not previously accrued)

Assuming the interest receivable was already accrued and we are just receiving the payment:
Debit: Cash (total amount received)
Credit: Notes Receivable (principal amount)
Credit: Interest Receivable (accrued interest amount)

Let's assume the principal amount of the note is $P$, the accrued interest is $I_{accrued}$. And the total amount received is $T = P+I_{accrued}$

Debit: Cash $T$
Credit: Notes Receivable $P$
Credit: Interest Receivable $I_{accrued}$

Answer:

Date	General Journal	Debit	Credit
	Notes Receivable		[Principal amount of the note]
	Interest Receivable		[Accrued interest amount]