Question
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............................................................................. $10,000
Assume interest is calculated on a monthly basis and is to be paid (by Hop-Flop) at the maturity date (last day of the final month). Assume also that Hop-Flop has a December 31 fiscal year-end. For each scenario below, answer the questions from Hop-Flops perspective.
- 1.a.i) What is the journal entry at the maturity date? (leave cells blank as necessary)
ACCOUNT | DR ($) | CR ($) |
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started