1. The following transactions took place for Parkells Grocery.

Jan. 1	Loaned $40,000 to a company cashier and received back a one-year, 11 percent note.
June 30	Accrued interest on the note.
Dec. 31	Received interest and principal on the note. (No interest has been recorded since June 30.)

Required:

Prepare the journal entries that Parkells 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.)

Journal entry worksheet Record the issuance of loan. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Journal entry worksheet Record the interest received on the loan. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal Journal entry worksheet