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Please answer last part of the question. Prepare the entry required on January 1, 2026, when the bank loan is repaid along with interest owing.
Please answer last part of the question. Prepare the entry required on January 1, 2026, when the bank loan is repaid along with interest owing. Please give a clear answer with the three account titles and the amount and if it debited or credited
Linda Hoadley and Barbara Quayle borrowed $13,600 on a 7-month, 9% bank loan from BMO Bank of Montreal to open their business, LB's Coffee House Inc. The money was borrowed on June 1, 2025, and the loan matures January 1, 2026. Interest is due at maturity. (a) Your answer is correct. Prepare the entry to record the bank loan. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) \begin{tabular}{|c|c|c|c|} \hline Date & Account Titles & Debit & Credit \\ \hline June 1, 2025 & Cash & & \\ \hline \multicolumn{4}{|l|}{4} \\ \hline \multicolumn{3}{|c|}{ eTextbook and Media } & Assistance Used \\ \hline \multicolumn{2}{|c|}{ List of Accounts } & & Assistance Used \\ \hline \end{tabular} (b) Your Answer - Your answer is partially correct. Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles Debit Credit June 30, 2025 (c) Your Answer * Your answer is incorrect. Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2025. Balance in Interest Payable Account \$ Question 2 of 8 1.5/4 List of Accounts Attempts: 3 of 3 used (d) Prepare the entry required on January 1, 2026, when the bank loan is repaid along with interest owing. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)Step by Step Solution
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