Question
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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