C&Q Marketing (CQM) recently hired a new marketing director, Jeff Otos, for its main office. As part

Question:

C&Q Marketing (CQM) recently hired a new marketing director, Jeff Otos, for its main office. As part of the arrangement, CQM agreed on February 28, 2017, to advance Jeff $50,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2018. CQM prepares financial statements on June 30 and December 31.

Required:

1. Prepare the journal entry that CSM will make when the note is established.

2. Prepare the journal entries that CSM will make to accrue interest on June 30 and December 31.

3. Prepare the journal entry that CSM will make to record the interest and principal payments on February 28, 2018.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

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