Question
Linda Robert and Barbara borrowed $12,000 on a 7-month, 6% note from Gem State Bank to open their business, Cullumbers Coffee House. The money was
Linda Robert and Barbara borrowed $12,000 on a 7-month, 6% note from Gem State Bank to open their business, Cullumbers Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.
(a)-(b), (d)
(a) | Prepare a tabular summary to record the receipt of the funds from the loan. | |
(b) | Prepare a tabular summary to accrue the interest on June 30. | |
(d) | Prepare a tabular summary to record the repayment of the loan on January 1, 2023. |
Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets | = | Liabilities | + | Stockholders Equity | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Pd.-in Cap. | Retained Earnings | |||||||||||||||
Cash | = | Notes Pay. | + | Interest Pay. | + | Common Stock | + | Revenue | - | Expense | - | Dividend | ||||
(a) | June 1, 2022 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | select an option Interest expenseBank charges expenseMiscellaneous expenseSales revenue | |||||||
(b) | June 30, 2022 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option Miscellaneous expenseBank charges expenseSales revenueInterest expense | |||||||
(d) | Jan. 1, 2023 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | select an option Bank charges expenseInterest expenseMiscellaneous expenseSales revenue |
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