Question

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, 2017, the company loaned $98,000 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, 2018, and at maturity on October 31, 2018. Required: Prepare journal entries that Marketplace Mall would record related to this note on the following dates: (a) November 1, 2017; (b) December 31, 2017 (Marketplace Mall's fiscal year-end); (C) April 30, 2018; and (d) October 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 0 3 0 5 Record the receipt of interest for the period ending April 30, 2018. Note: Enter debits before credits. Credit Debit 4,410 Date General Journal Apr 30, 2018 Cash Interest Receivable Interest Revenue Record entry Clear entry View general journal

Answer 1

Nov. 1,2017	Notes receivable	98000
	Cash		98000
Dec. 31,2017	Interest receivable	1470		=98000*9%*2/12
	Interest revenue		1470
Apr. 30,2018	Cash	4410
	Interest receivable		1470
	Interest revenue		2940	=98000*9%*4/12
Oct. 31,2018	Cash	4410		=98000*9%*6/12
	Interest revenue		4410
Oct. 31,2018	Cash	98000
	Notes receivable		98000