Exercise 10-1 m Gem State Bank to open their business, JC\'s Coffee House. The m

Question

Exercise 10-1 m Gem State Bank to open their business, JC's Coffee House. The money was boro ed on June Kel ones and Tani Cra rond bo o ed S9 600 on a 7-month 2017, and the note matures January 1, 2018. 10% note f 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 manua 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.) Credit une 30

Explanation / Answer

Journal entry :

Balance in interest payable account on dec 31, 2017 = 80*7 = 560

Journal entry :

date accounts & explanation debit credit june 1 Cash a/c 9600 Notes payable 9600 June 30 Interest expenses a/c (9600*10%*1/12) 80 Interest payable a/c 80

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