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On June 1, 20X1. Cara Corp., a calendar year-end company, realizes one of its main suppliers is having difficulty meeting delivery schedules due to lack
On June 1, 20X1. Cara Corp., a calendar year-end company, realizes one of its main suppliers is having difficulty meeting delivery schedules due to lack of funds. The supplier's lack of funds is hurting Cara's own business; therefore, Cara agrees to lend $50,000 in cash to its supplier using a 12-month, 12% note. Required: In the journal below, prepare Cara's entries to (1) record the original loan to the supplier, (2) record accrued interest on December 31, 20X1, and (3) record the cash collection of the note and interest on June 1, 20x2. Note: Round interest calculations to the nearest whole month. Do not include symbols, decimals, or cents in your responses. Date Account Name Debit Credit 6/1/X1 12/31/X1 6/1/X2 > >
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