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On August 31, 2018, Brooke Thibeault borrowed $11,000 from Ferris State Bank. Thibeault signed a note payable, promising to pay the bank principal plus interest
On August 31, 2018, Brooke Thibeault borrowed $11,000 from Ferris State Bank. Thibeault signed a note payable, promising to pay the bank principal plus interest on August 31, 2019. The interest rate on the note is 9%. The accounting year of Ferris State Bank ends on June 30, 2019. Journalize Ferris State Bank's (a) lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019, and (c) collection of principal and interest at August 31, 2019, the maturity date of the note. Journalize Ferris State Bank's (a) lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019, and (c) collection of principal and interest at August 31, 2019, the maturity date of the note. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) Prepare the journal entry for the issuance of the note receivable on August 31, 2018. Journal Entry Accounts Date Debit Credit 2018 Aug 31 (b) Prepare the journal entry to record the accrual of interest at June 30, 2019 Journal Entry Date Accounts Debit Credit 2019 Jun 30 (c) Prepare the journal entry to record the collection of the note principal and interest at August 31, 2019, the maturity date of the note. Journal Entry Date Accounts Debit Credit 2019 Aug 31
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