E8-11 Recording Note Receivable Transactions, Including Accrual Adjustment for I

Question

E8-11 Recording Note Receivable Transactions, Including Accrual Adjustment for Interest [LO 8-3] The following transactions took place for Parker's Grocery a. Jan. 1 b. June 30 c. Dec. 31 d. Dec. 31 Loaned $56,000 to a cashier of the company and received back a one-year, 8 percent note Accrued interest on the note. Received interest on the note. (No interest has been recorded since June 30.) Received principal on the note. Required Prepare the joumal 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 Journal entry worksheet 4 Record the interest accrued on the note as of June 30. Note: Enter debits before credits. Date General Journal DebitCredit Jun 30 Record entry Clear entry View general journal

Explanation / Answer

Jan-01 Notes receivable 56000             Cash 56000 Jun-30 Interest receivable 2240 =56000*8%/12*6         Interest revenue 2240 Dec-31 Cash 4480         Interest receivable 2240         Interest revenue 2240 Dec-31 Cash 56000         Notes receivable 56000

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