Question 5 (of 10) 12.00 points The following transactions took place for Parker

Question

Question 5 (of 10) 12.00 points The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned $53,000 to a cashier of the company and received back a one-year, 8 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Recelived principal on the note. Prepare the journal entries that Parker's Grocery would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the receipt of a note on January 1 for a $53,000 loan to an employee. Record the interest accrued on the note as of June 30. Record the receipt of the interest on the note's maturity ployee 2 3 date. No interest has been recorded since June 30. 4 Record the receipt of the payment for the full principal. Credit MacBoolk F5 2 3 4 6

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1 Notes receivable 53000      Cash 53000 (To record loan given) Jun 30 Interest receivable (53000*8%*6/12) 2120      Interest revenue 2120 (To record accured interest) Dec 31 Cash 4240      Interest receivable 2120      Interest revenue 2120 (To record interest received) Dec 31 Cash 53000      Notes receivable 53000 (To record principal amount received)

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