Question
Kelly Jones and Tami Crawford borrowed $21,600 on a 7-month, 5% note from Gem State Bank to open their business, Carla Vistas Coffee House. The
Kelly Jones and Tami Crawford borrowed $21,600 on a 7-month, 5% note from Gem State Bank to open their business, Carla Vistas Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.
a. Prepare the entry to record the receipt of the funds from the loan.
b.Prepare the entry to accrue the interest on June 30.
c.Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2022.
| Balance in interest payable account |
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
