92 SOLID FOOTING Chapter 7 - Adjusting Entries Problem 7-7 Take-Out a Loan - Accrue Interest on the Loan - Pay Interest On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are the terms and other information pertaining to the loan: Amount of the loan How long the loan is for the term of the loan) Date the loan was made Date of first interest payment to the bank Amount of interest charged by the bank for April Amount of interest charged by the bank for May Amount of interest charged by the bank for June $100,000 1 year April 1, 2021 June 30, 2021 $550 $568 $550 The following is a partial list of the accounts in Baker's General Ledger. These are the only accounts you need for this problem. D Cash- Note Payable D. Interest Payable Interest Expense Use the forms on Tab 7-7 in the Excel file workbook Chapter 070 - Problem 7-1 to 7-8 Forms to complete this problem. Use the forms on Tab 7-7 in the Excel file workbook Chapter 07 C - Problem 7-1 to 7-8 Forms to complete this problem. Requirement 1 Prepare the April 1, 2021 General Journal entry to record getting the loan from the bank. Requirement 2 Prepare the April 30, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of April. Requirement 3 Prepare the May 31, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of May. Requirement 4 Prepare the June 30, 2021 Generat Journal entry to record the payment of the April, May, and June interest to the bank. Hint: For help with how this interest payment should be recorded: Look at March 30 Interest Payment to the Bank starting on Pg 57 in the file 06 - Accounting Cycle.pdf Look at the March 30 interest payment transaction (Pay Interest button) on the March tab of the Excel 02-Gray Co workbook. Take-Out a Loan -- Accrue Interest on the Loan Pay Interest Requirement 1 -- April 1 get the loan from the bank Date Account Name cash Debit Credit apr 1 note payable Requirement 2 -- April 30 interest accrual adjusting entry Date apr 30 Account Name interest expense interest payable Debit Credit 550 Requirement 3 - May 31 interest accrual adjusting entry Date Account Name Debit Credit 7-2 A12B 3A 3B74 A 5A 1-5B 7-6 7-7 7-8 Requirement 4 -- Payment of the April, May, and June interest to the bank Date Account Name Debit Credit Chapter 7 - Adjusting Entries SOLID FOOTING 93 Problem 7-8 Accrue Rent Payable - Pay Rent the Following Month On September 1, 2021, Baker Construction, Inc. signed a contract to rent a warehouse. Baker's rent on the warehouse started that same day. On September 1, the landlord did not require Baker to pay the first month's rent. The landlord indicated that she would stop-by on October 5 to collect the $2,000 of rent for the month of September. The following is a partial list of the accounts in Baker's General Ledger. These are the only accounts you need for this problem. Cash D Rent Payable (liability account) B Rent Expense Use the forms on Tab 7-8 in the Excel workbook Chapter 27 C - Problem 7-1 to 7-8 Forms to complete this problem. Requirement 1 Prepare the General Journal entry Baker should make on September 1, 2021. If no entry is required, put "No Entry Required" on the General Journal form. Requirement 2 Prepare the September 30, 2021 Rent Payable adjusting entry. If no entry is required, put "No Entry Required" on the General Journal form. Requirement 3 Prepare the General Journal entry Baker should make on October 5, 2021 to record the $2,000 payment of September's rent. If no endry is required, put "No Entry Required" on the General Journal form Accrue Rent Payable -- Pay Rent the Following Month Requirement 1 -- September 1 entry to record signing the contract Date Account Name Debit Credit Requirement 2 -- September 30 rent payable accrual adjusting entry Date Account Name Debit Credit Requirement 3 - October 5 payment of September's rent Date Account Name Debit Credit 7-4B7.5A