Question
Kelly Jones and Tami Crawford borrowed $33,000 on a 7-month, 6% note from Gem State Bank to open their business, Cranes Coffee House. The money
Kelly Jones and Tami Crawford borrowed $33,000 on a 7-month, 6% note from Gem State Bank to open their business, Cranes Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.
Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
June 1 | enter an account title to record the receipt of the funds from the loan on June 1enter an account title to record the receipt of the funds from the loan on June 1 | enter a debit amountenter a debit amount | enter a credit amountenter a credit amount |
enter an account title to record the receipt of the funds from the loan on June 1enter an account title to record the receipt of the funds from the loan on June 1 | enter a debit amountenter a debit amount | enter a credit amountenter a credit amount |
eTextbook and Media
Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
June 30 | enter an account title to accrue the interest on June 30enter an account title to accrue the interest on June 30 | enter a debit amountenter a debit amount | enter a credit amountenter a credit amount |
enter an account title to accrue the interest on June 30enter an account title to accrue the interest on June 30 | enter a debit amountenter a debit amount | enter a credit amountenter a credit amount |
eTextbook and Media
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 | $enter the Balance in interest payable account in dollars enter the Balance in interest payable account in dollars |
eTextbook and Media
List of Accounts
Prepare the entry required on January 1, 2023, when the loan is paid back. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 1, 2023 | enter an account title on January 1enter an account title on January 1 | enter a debit amountenter a debit amount |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started