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at Fresnos ×/ D CH 8 Assignment × D Check Your Wor C | ? ezto.mheducation.com/hm

ID: 2512253 • Letter: A

Question

at Fresnos ×/ D CH 8 Assignment × D Check Your Wor C | ? ezto.mheducation.com/hm.tpx The following transactions took place for Parker's Grocery Jan. 1 Loaned $55,000 to a cashier of the company and received back a one-year, 9 percent note. b. June c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. ed interest on the note. Required: Prepare the journal entries that Parker's Grocery would record for the above transactions. (f no entry is required for a transactionlevent, select "No Journal Entry Required" in the first acqnt field.) View transaction list Journal entry worksheet 3 Record the receipt of a note on January 1 for a $55,000 loan to an employee. Note: Enter debits before credits. Date General Journal DebitC Credit Jan 01 Record entry Clear entry View general journal P[1) (3).pptx TEAM EVALUATION F...docxCH8PP(1) (2)pptx CH 8 PP(1) (1)ppt

Explanation / Answer

Answer

Notes receivables amount

$55000

Interest rate

9%

Annual Interest [55000 x 9%]

$4950

Interest till 30 June [6 months] [4950 x6/12]

$2475

Interest from 1 July to 31 Dec [4950 x6/12]

$2475

Date

General Journal

Debit

Credit

01-Jan

Notes Receivables

$          55,000.00

Cash

$       55,000.00

(notes received)

30-Jun

Interest receivables

$             2,475.00

Interest Revenue

$         2,475.00

(Accrued interest on that note)

31-Dec

Cash

$             4,950.00

Interest revenue

$         2,475.00

Interest receivables

$         2,475.00

(receipt of interest)

31-Dec

Cash

$          55,000.00

Notes Receivables

$       55,000.00

(Principal received)

Notes receivables amount

$55000

Interest rate

9%

Annual Interest [55000 x 9%]

$4950

Interest till 30 June [6 months] [4950 x6/12]

$2475

Interest from 1 July to 31 Dec [4950 x6/12]

$2475