Question

 The following transactions took place for Parker's Grocery.

 a. Jan. 1 Loaned $47,e8e to a cashier of the company and received back a one-year, 1e percent note.

 b. June 38 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.

 Required:

 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 flrst account field.)

Answer 1

Answers

Date	General Journal	Debit	Credit
Jan-01	Notes receivables	$47,000
	Cash		$47,000
	(to record receipt of note)
Jun-30	Interest receivables ($47000 x 10% x 6/12)	$2,350
	Interest revenue		$2,350
	(to record interest accrued)
Dec-31	Cash	$4,700
	Interest revenue		$2,350
	Interest receivables		$2,350
	(to record cash receipt interest)
Dec-31	Cash	$47,000
	Notes receivables		$47,000
	(to record receipt of principal)