Question
The following transactions took place for Smart Solutions Inc. 2014 a. July 1 Loaned $67,000 to an employee of the company and received back a
| The following transactions took place for Smart Solutions Inc. |
| 2014 | ||
| a. | July 1 | Loaned $67,000 to an employee of the company and received back a one-year, 9 percent note. |
| b. | Dec. 31 | Accrued interest on the note. |
| 2015 | ||
| c. | July 1 | Received interest on the note. (No interest has been recorded since December 31.) |
| d. | July 1 | Received principal on the note. |
| Required: |
| Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) |
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
