Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Processes and Controls

Authors: Leslie Turner, Andrea Weickgenannt

2nd edition

9781118473030, 1118162307, 1118473035, 978-1118162309

More Books

Students also viewed these Accounting questions

Question

What is an insurable interest? Why is it important?

Answered: 1 week ago