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On July 1, 2021, MegaMoney, Inc. loaned money to ShortOfCash company (SOC). MegaMoney had SOC sign a note for the loan. The following are the terms and other information pertaining to t' The following is a partial list of the accounts in MegaMoney's General Ledger. These are the only accounts you need for this problem. Cash Note Receivable (see below for a definition of this account) Interest Receivable (see below for a definition of this account) 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. Use the forms on Tab in the Excel file Problem 8-1 to 8-4 Forms to complete this problem. Note: You are recording the transactions in MegaMoney's accounting system. Requirement 1 Prepare the July 1, 2021 General Joumal 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, 2021 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, 2021 General Journal adjusting entry to increase the Interest Receivable account by the amount of interest MegaMoney eamed on the Note Receivable for August. Requirement 4 Prepare the September 30, 2021 General Joumal entry to record the receipt of cash by MegaMoney from SOC for the July, August, and September interest. Requirement 1 - July 1 MegaMoney making the loan to SOC Requirement 2 - July 31 Interest Receivable adjusting entry Requirement 3 - August 31 Interest Receivable adjusting entry Requirement 4 September 30 receipt of cash by MegaMoney for July, August, and September interestStep by Step Solution
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