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please help. Instructions posted in the pictures to anwser question that are made by professor. E8-12 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest
please help. Instructions posted in the pictures to anwser question that are made by professor.
E8-12 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest LO 8-3 To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under formal contracts, provided that they use it to renovate their store space. On November 1, 2020, the company loaned $100,000 to new tenants on one-year notes with stated annua interest rates of 9 percent. Interest is to be received by Marketplace Mall on April 30, 2021, and at maturity on October 31, 2021. Required: epare journal entries that Marketplace Mall would record related to these notes on the following dates: (a) November 1, 2020; (6) December 31, 2020 (Marketplace Mall's fiscal year-end); (c) April 30, 2021; and (d) October 31, 2021. For E8-12 This is almost the same as the example on page 7 of the chapter 8 outline On 11/1, lend the money (the firm is the lender so giving cash on 11/1); there is no expense in any of these entries - the firm is a lender earning interest On 12/31, record interest revenue for 2 months On 4/30, 1 debit, 2 credits; receive interest in cash (6 months of cash, 4 months of revenue) On 10/31, receive interest in cash (6 months of cash, 6 months of revenue) On 10/31, collect the principle in cash Don't forget the effects of each entry; the combined will reflect the interest earned C. Eee, page E8-12, page 378; for each journal entry, also report the effects; in addition, report the combined effects of all five journal entriesStep by Step Solution
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