Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2023, from Natalie's grandmother.
Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2023, from Natalie's grandmother. Interest on the note is 9% per year, and the note plus interest was to be repaid in 24 months. Recall that a monthly adjusting journal entry was prepared for the months of November 2023 (1/2 month), December 2023, and January 2024. (a) Your Answer Correct Answer Your answer is correct. Calculate the interest payable that was accrued and recorded up to January 31, 2024. (Round answer to O decimal places, e.g. 125.) Interest payable +A $ 37.5 (b1) Your answer is correct. Calculate the total interest expense and interest payable from February 1 to August 31, 2024. (Round answer to O decimal places, e.g. 125.) Total interest expense and interest payable $ List of Accounts Using multiple attempts will impact your score. 10% score reduction after attempt 2 105 Attempts: 1 of 3 used (b2) Your answer is correct. Prepare the journal entry at August 31, 2024, to bring the accounting records up to date. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answer to O decimal places, e.g. 125.) Date Account Titles and Explanation Aug. 31 Interest Expense Interest Payable List of Accounts Using multiple attempts will impact your score. 10% score reduction after attempt 2 Debit 105 Credit 105 Attempts: 2 of 3 used (c) Natalie repays her grandmother on September 15, 2024-10 months after her grandmother extended the loan to Cookie Creations. Prepare the journal entry for the loan repayment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answer to O decimal places, e.g. 125.) Date Sept. 15 Account Titles and Explanation Debit Credit List of Accounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started