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The following transactions took place for Smart Solutions Inc. 2014 a. July 1 Loaned $60,000 to an employee of the company and received back a
| The following transactions took place for Smart Solutions Inc. |
| 2014 | ||
| a. | July 1 | Loaned $60,000 to an employee of the company and received back a one-year, 8 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. |
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