Question
In an effort to raise some cash for operating activities, Whispering Winds Corporation approached BRC Ltd. and asked to borrow $120,000 (the Presidents of Whispering
In an effort to raise some cash for operating activities, Whispering Winds Corporation approached BRC Ltd. and asked to borrow $120,000 (the Presidents of Whispering Winds and BRC were cousins). BRC agreed to loan $120,000 to Whispering Winds for three months at 6% interest. On August 1, Whispering Winds signed a promissory note for the amount, promising to repay the funds plus interest on November 1.
ENTER all the journal entries on the books of BRC to record the note receivable, assuming that BRC fiscal year-end is September 30 and repayment of the note receivable plus interest occurs on November 1.
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