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On September 30, 2018, Team Bank loaned $94,000 to Kendall Warner on a one-year, 6% note. Team's fiscal year ends on December 31. Read the
On September 30, 2018, Team Bank loaned $94,000 to Kendall Warner on a one-year, 6% note. Team's fiscal year ends on December 31. Read the requirements. Requirement 1. Journalize all entries for Team Bank related to the note for 2018 and 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by recording the loan on September 30, 2018 Date Accounts and Explanation Debit Credit 2018 Sep. 30 Record the entry to accrue interest revenue on the Warner note at December 31, 2018. (Use months for interest calculations.) Date Accounts and Explanation Debit Credit 2018 Dec. 31 Journalize the collection of the note from Kendall Warner at maturity. (Prepare a single compound journal entry. Use months for interest calculations.) Date Accounts and Explanation Debit Credit 2019 Sep. 30 Requirement 2. Which party has a a. note receivable b. note payable c. interest revenue d. interest expense Requirement 3. Suppose that Kendall Warner defaulted on the note. What entry would Team record for the dishonored note? (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound journal entry. Use months for interest calculations.) Date Accounts and Explanation Debit Credit 2019 Sep. 30
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