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On August 31, 2021, Becca Turner borrowed $10,000 from First State Bank. Turner signed a note payable, promising to pay the bank principal plus
On August 31, 2021, Becca Turner borrowed $10,000 from First State Bank. Turner signed a note payable, promising to pay the bank principal plus interest on August 31, 2022. The interest rate on the note is 6%. The accounting year of First State Bank ends on June 30, 2022. Journalize First State Bank's (a) lending money on the note receivable at August 31, 2021, (b) accrual of interest at June 30, 2022, and (c) collection of principal and interest at August 31, 2022, the maturity date of the note. (b) Prepare the journal entry to record the accrual of interest at June 30, 2022. Journal Entry Date Accounts 2022 Jun 30 Interest Receivable Interest Revenue Debit Credit 500 500 (c) Prepare the journal entry to record the collection of the note principal and interest at August 31, 2022, the maturity date of the note. Date 2022 Aug 31 Journal Entry Accounts Debit Credit
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