Nova Corporation hired a new product manager and agreed to provide her a $36.000

Question

Nova Corporation hired a new product manager and agreed to provide her a $36.000 relocation loan ona six-month. 5 percent note a. The company loans the money on January 1. b. The new employee pays Nova the interest owed on the maturity date. c. The new employee pays Nova the full principal owed on the maturity date. es to record the above transactions for Nova Corporation. (If no entry is ren red for Prepare jo a transaction-vent, select 'No Journal Entry Required" in the first account field. Do not iuund intermediate calculations.) View transaction list Journal entry worksheet The company loans the money on January 1. Record the transaction. Note: Entr dlebits bere are Date General Journal DebitCredit January 0 Record erto Clear entr

Explanation / Answer

Solution: No. Date General Journal Debit Credit 1. January 01 Notes Receivable 36,000 Cash 36,000 No. Date General Journal Debit Credit 2 July 01 Cash 900 Interest Revenue 900 Notes: [$36,000 x 5% x (6/12) = $900] interest received No. Date General Journal Debit Credit 3. July 01 Cash 36,000 Notes Receivable 36,000 Please feel free to ask if anything about above solution in comment section of the question.

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