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Exercise 10-1 Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% no

ID: 2513960 • Letter: E

Question

Exercise 10-1

Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018.

Date

Account Titles and Explanation

Debit

Credit

June 1

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

June 30

SHOW LIST OF ACCOUNTS

LINK TO TEXT

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2018

Exercise 10-1

Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr June 01 Cash Dr            11,143.00 To Note Payable            11,143.00 June 30 Interest Expense Dr                    65.00 To Interest Payable                    65.00 (11143*7%/12) At Dec 31 Balance in Interest Payable Account= 65*7                  455.00 Jan 01 2018 Note Payable Dr            11,143.00 Interest payable DR                  455.00 To Cash            11,598.00