Exercise 10-1 y Jones and Tan Crawfurd borrowed $36,000 on a 7 month 4% note fro
ID: 2573457 • Letter: E
Question
Exercise 10-1 y Jones and Tan Crawfurd borrowed $36,000 on a 7 month 4% note from Gem State Bank to open their business, JC'sCoree H e. The money was borrowed or June 1 2017, and the note matures January 1 20 Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automaticafly indented iwhen amount is entered. Do not indent manualy.) Debit Credit Date Acoount Titles and Explanation une 1 VIDEO SIMILAR EXERCIsE Prepare the et oacrua the interest an June 3. (Crodit account titlos are automatically indented when amount is entered. Da not indent manually.) Dale Account Tiles and Explanation June 30 Assuming adusting entries are made at the end of each month,determine the balance in the interest payable account at December 31, 2017 Balance in interest payable accaunts Prepare the entry requlred on January 1, 2018, when the loan is pald back. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dcbit an. 1, 2018Explanation / Answer
10-1) Journal entry :
Balance interest payable account = 120*7 = 840
Date accounts & explanation debit credit June 1 Cash a/c 36000 4% notes payable a/c 36000 (To record notes payable) June 30 Interest expenses a/c (36000*4%*1/12) 120 Interest payable a/c 120 (To record interest accured)Related Questions
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