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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, 2020, the company loaned $92,000 to new tenants on one-year notes with stated annual interest rates of 9 percent. Interest is to be received by Marketplace Mall on April 30, 2021, and at maturity on October 31, 2021.

Required:

Prepare journal entries that Marketplace Mall would record related to these notes on the following dates: (a) November 1, 2020; (b) December 31, 2020 (Marketplace Malls fiscal year-end); (c) April 30, 2021; and (d) October 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

  • Record the receipt of notes on November 1, 2020 for $92,000 in loans to new tenants.
  • Record the interest accrued on the notes as of December 31, 2020.
  • Record the receipt of interest for the period ending April 30, 2021.
  • Record the receipt of the interest on the notes maturity date.
  • Record the receipt of the payment for the full principal.

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