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Crane Hoadley and Mary Quayle borrowed $12,800 on a 7-month, 9% bank loan from BMO Bank of Montreal to open their business, C Ms Coffee

Crane Hoadley and Mary Quayle borrowed $12,800 on a 7-month, 9% bank loan from BMO Bank of Montreal to open their business, C Ms Coffee House Inc. The money was borrowed on June 1, 2022, and the loan matures January 1, 2023. Interest is due at maturity.

(a)

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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 1 used

(b)

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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 1 used

(c)

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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

Attempts: 1 of 1 used

(d)

Prepare the entry required on January 1, 2023, when the bank loan is repaid along with interest owing. (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

Jan. 1, 2023

enter an account title for the journal entry on January 1, 2019

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1, 2019

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1, 2019

enter a debit amount

enter a credit amount

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