Question 5 (of 10) 12.00 points The following transactions took place for Parker's Grocery. a....
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Question 5 (of 10) 12.00 points The following transactions took place for Parker's Grocery.
a. Jan. 1 Loaned $53,000 to a cashier of the company and received back a one-year, 8 percent note.
b. June 30 Accrued interest on the note.
c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.)
d. Dec. 31 Received principal on the note.
Prepare the journal entries that Parker's Grocery 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.) View transaction list
1 Record the receipt of a note on January 1 for a $53,000 loan to an employee.
Record the interest accrued on the note as of June 30.
Record the receipt of the interest on the note's maturity employee
No interest has been recorded since June 30. 4
Record the receipt of the payment for the full principal.
Interest
Interest is a kind of indirect expenses and this would be allowable on the loans were taken from a bank or the lenders and this would reduce the net income
Answer and Explanation: 1
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View this answer| Journal etnry | |||
|---|---|---|---|
| Date | Account Titles and Explaination | Debit | Credit |
| 1-Jan | Notes receivable | $53,000 | ...|
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