Rebecca Fleming and Carrie Platt borrowed $20,000 on a 7-month, 9% note from Gopher State Bank to open their business, RCs Coffee House. The money was borrowed on June 1, N, and the note matures January 1, N+1.

Rebecca Fleming and Carrie Platt borrowed $20,000 on a 7-month, 9\% note from Gopher State Bank to open their business, RC's Coffee House. The money was borrowed on June 1,N, and the note matures January 1 , N+1. Instructions (a) Prepare the entry to record the receipt of the funds from the loan. (b) Prepare the entry to accrue the interest on June 30,N. (c) Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at December 31,N. (d) Prepare the entry required on January 1,N+1, when the loan is paid back. On May 15, Redhead Clothiers borrowed some money on a 3-month note to provide cash during the slow season of the year. The interest rate on the note was 4%. At the time the note was due, the amount of interest owed was $900. Instructions (a) Determine the amount borrowed by Redhead. (b) Assume the amount borrowed was $50,000. What was the interest rate if the amount of interest owed was $600 ? (c) Prepare the entry for the initial borrowing and the repayment for the facts in part (a)