Problem 8-3 Loan NM Money- Accrue Monthly Interest -Collect Interest On July 1, 2017, MegaMoney, Inc. loaned money to ShortOCash company (SOC), MegaMoney had SOC sign a note for the loan. The following are the terms and other information pertaining to Amount of the loan How long the loan is for (the term of the loan 1 year Date the loan was made Date when interest will first be received by MegaMoney Amount of interest earned by MegaMoney for July$3,825 Amount of interest earned by MegaMoney for August Amount of interest earned by MegaMoney for September. the loan: $750,000 July 1, 2017 September 30, 2017 $3,825 $3,710 The following is a partial list of the accounts in MegaMoney's General Ledger. These are the only accounts you need for this problem. D Cash D Note Receivable (see below for a definition of this account) D Interest Receivable (see below for a definition of this account) D Interest Revenue (revenue account) Note Receivable account-An asset account that tracks the amount owed to the entity (MegaMoney) by another company(SOC). This asset results from the entity making a loan to the other company and the other company signing a Note. The normal balance is a debit. Interest Receivable account-An asset account that tracks the amount of interest owed to the entity (MegaMoney) by another company (SOC). The normal balance is a debit Remove and use the forms on Pg 231 to complete this problem. Note: You are recording the transactions in MegaMoney's accounting system. Requirement 1 Prepare the July 1, 2017 General Journal entry to record the loan MegaMoney made to SOC Hint: MegaMoney gave out the asset Cash. MegaMoney got in the asset Note Receivable. Requirement 2 Prepare the July 31, 2017 General Journal adjusting entry to increase the Interest Receivable account by the amount of interest MegaMoney earned on the Note Receivable for July. Requirement 3 Prepare the August 31, 2017 General Journal adjusting entry to increase the Interest Receivable account by the amount of interest MegaMoney earmed on the Note Receivable for August Requirement 4 Prepare the September 30, 2017 General Journal entry to record the receipt of cash by MegaMoney from SOC for the Jly, August, and September interest Hint: The account names have been put in the General Journal