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I need help with the amounts. It would be helpful to know how to get them as well. E8-10 Recording Note Receivable Transactions, Including Accrual
I need help with the amounts. It would be helpful to know how to get them as well.
E8-10 Recording Note Receivable Transactions, Including Accrual Adjustment for Interest [LO 8-3] The following transactions took place for Smart Solutions Inc. 2014 a. July 1 b. Dec. 31 1 Loaned $71,000 to an employee of the company and received back a one-year, 9 percent note Accrued interest on the note 2015 c. July d. July Received interest on the note. (No interest has been recorded since December 31.) Received principal on the note 1 Required Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. Date General Journal Debit Credit Jul 01, 2014 Notes Receivable 71,000 Cash 71,000 Dec 31, 2014 Interest Receivable 6,390 Interest Revenue 6,390 Jul 01, 2015 Cash 6,390 6,390 6,390 Interest Receivable Interest Revenue 4 Jul 01, 2015 Cash 77,390 Notes Receivable 77,390Step by Step Solution
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