Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On August 31, 2021, Brooke Thomas borrowed $4,000 from Armour State Bank. Thomas signed a note payable, promising to pay the bank principal plus interest
On August 31, 2021, Brooke Thomas borrowed $4,000 from Armour State Bank. Thomas signed a note payable, promising to pay the bank principal plus interest on Augu K rate on the note is 9%. The accounting year of Armour State Bank ends on June 30, 2022. Journalize Armour State Bank's (a) lending money on the note receivable at Au of interest at June 30, 2022, and (c) collection of principal and interest at August 31, 2022, the maturity date of the note. Date 2021 Aug 31 Date 2022 Jun 30 Accounts Note Receivable - Brooke Thomas (b) Prepare the journal entry to record the accrual of interest at June 30, 2022. Journal Entry Date 2022 Aug Cash 31 Accounts Interest Receivable Interest Revenue Debit 4,000 Accounts Debit 300 (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. Journal Entry Credit Debit 4,000 Credit 300 Credit
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