Coronado Hoadley and Donna Quayle borrowed $15,200 on a 7-month, 9% bank loan from BMO Bank of Montreal to open their business, C Ds Coffee House Inc. The money was borrowed on June 1, 2022, and the loan matures January 1, 2023. Interest is due at maturity.

(a)

Correct answer icon

Your answer is correct.

Prepare the entry to record the bank loan. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jun. 1, 2022	enter an account title for the journal entry on June 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on June 1	enter a debit amount	enter a credit amount

Attempts: 1 of 2 used

Using multiple attempts will impact your score.

50% score reduction after attempt 1

(b)

Correct answer icon

Your answer is correct.

Prepare the entry to accrue the interest on June 30. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date	Account Titles and Explanation	Debit	Credit
Jun. 30, 2022	enter an account title for the entry to accrue the interest on June 30	enter a debit amount	enter a credit amount
	enter an account title for the entry to accrue the interest on June 30	enter a debit amount	enter a credit amount

Attempts: 1 of 2 used

Using multiple attempts will impact your score.

50% score reduction after attempt 1

(c)

Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2022. (Round answer to the nearest whole dollar, e.g. 5,275.)

Balance in Interest Payable Account

$enter the balance in Interest Payable account in dollars rounded to the nearest whole