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To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under formal contracts, provided that they use it to renovate
To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under formal contracts, provided that they use it to renovate their store space. On November 1, 2014, the company loaned $107,000 to a new tenant on a one-year note with a stated annual interest rate of 9 percent. Interest is to be received by Marketplace Mall on April 30, 2015, and at maturity on October 31, 2015. Required Prepare journal entries that Marketplace Mall would record related to this note on the following dates: (a) November 1, 2014; (b) December 31, 2014 (Marketplace Mall's fiscal year-end); (c) April 30, 2015 and (d) October 31, 2015. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. No Date General Journal Debit Credit Nov 01, 2014 Notes Receivable 107,000 Cash 107,000 12/31/2014 Interest Receivable 1,605 Interest Revenue 1.605 Apr 30, 2015 Cash 3,210 Interest Revenue 1,605 Interest Receivable ,605 Oct 31, 2015 1,088,605 Notes Receivable 107,000 Interest Revenue 1,605 Oct 31, 2015 108,605 Notes Receivable 107,000 Interest Revenue 1,605
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