A corporation hired a new product manager and agreed to provide her a $28,000 re

Question

A corporation hired a new product manager and agreed to provide her a $28,000 relocation loan on a six-month, 8 percent note.

Prepare journal entries to record the above transactions for the corporation based on the following

1) The company loans the money on January 1. Record the transaction.

2) The new employee pays the company the interest owed on the maturity date. Record the transaction.

3) The new employee pays the company the full principal owed on the maturity date. Record the transaction.

Date

General Journal

Debit

Credit

June 30

A corporation hired a new product manager and agreed to provide her a $28,000 relocation loan on a six-month, 8 percent note.

Prepare journal entries to record the above transactions for the corporation based on the following

Explanation / Answer

Journal Entries Date Particulars Dr Amt Cr Amt 1-Jan 8% Notes Reeivable Dr                   28,000.00 To Cash           28,000.00 30-Jun Cash A/C Dr                      1,120.00 To Interest Revenue              1,120.00 (28,000 *8%*6/12) 30-Jun Cash A/c Dr                   28,000.00 To 8%Notes Receivable           28,000.00

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