The following transactions took place for Parker\'s Grocery. a. Jan. 1 Loaned $4

Question

The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned $45,000 to a cashier of the company and received b. June 30 Accrued interest on the note. back a one-year, 8 percent note Received interest on the note. (No interest has been recorded since June 30.) C. Dec. 31 d. Dec. 31 Received principal on the note. Required: 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.) Journal entry worksheet 2 Record the receipt of a note on January 1 for a $45,000 loan to an employee. Note: Enter debits before credits Date General Journal Debit Credit Jan 01

Explanation / Answer

Q1 Journal Entries Date Accounts title and explanations Debit $ Credit $ 1-Jan Notes receivable Dr. 45000      Cash Account 45000 30-Jun Interest receivable Dr. 1800     Interest revenue 1800 31-Dec Cash Account Dr. 3600     Interest receivable 1800     Interest revenue 1800 31-Dec Cash Acccount Dr. 45000        Notes receivable 45000

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