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Hop-Flop Inc. has the following accounts listed in its ledger: Cash Notes Payable Interest Payable Interest Expense On June 1, 2021, Beerbo loaned Hop-Flop Inc.

Hop-Flop Inc. has the following accounts listed in its ledger:

  • Cash
  • Notes Payable
  • Interest Payable
  • Interest Expense

On June 1, 2021, Beerbo loaned Hop-Flop Inc. $10,000 at 6% annual interest. The journal entry Hop-Flop recorded was as follows:

DR. Cash................................................................................ $10,000

CR. Notes Payable............................................................................. $10,000

Assume interest is calculated on a monthly basis and is to be paid (by Hop-Flop) at the maturity date (last day of the final month). Assume also that Hop-Flop has a December 31 fiscal year-end. For each scenario below, answer the questions from Hop-Flops perspective.

  1. 1.a.i) What is the journal entry at the maturity date? (leave cells blank as necessary)

ACCOUNT

DR ($)

CR ($)

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