Exercise 10-1 Kelly Jones and Tami Crawford borrowed $9,600 on a 7-month, 10% no

Question

Exercise 10-1

Kelly Jones and Tami Crawford borrowed $9,600 on a 7-month, 10% 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.

Exercise 10-1 lly Jones and Tami Crawford borrowed $9,600 on a 7-month 109 note from Gem State Bank to open their business c s Coffee House. The money was on owed on June 1, 2017, and the note matures January 1, 2018 Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30

Explanation / Answer

Journal entry : Receipt of funds

Accured interest :

Balance in interest payable account on december 31, 2017 = (9600*10%*7/12)=560

Journal entry : Loan is paid back :

Date accounts & explanation debit credit 2017 june 1 Cash a/c 9600 10% notes payable a/c 9600

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.