Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve LS-6 Tool loaned $30,000 for 2 months to another corporation on November 30, 2020 (due January 31, 2021) and received an 8% note
please solve LS-6 Tool loaned $30,000 for 2 months to another corporation on November 30, 2020 (due January 31, 2021) and received an 8% note for the principal amount of the loan ($30,000). Assuming interest/principal are due at maturity (i.e. LS-6 will not receive any cash until January 31, 2021), and that LS-6 recorded all necessary accrual journal entries as of December 31, 2020 (year-end), what entry should LS-6 make on January 31, 2021 assuming full cash payment is received on that date? Cash 30,400 Note Receivable 30,000 Interest Receivable 200 Interest Income 200 Cash 400 Interest Income 400 Cash 30,000 Note Receivable 30,000 Cash 30,400 Note Receivable 30,000 Interest Income 400 No entry is required at January 31, 2021
please solve
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