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 $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, 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): () 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 Record the receipt of a note on November 1, 2017 for a $107,000 loan to a new tenant. Note: Enter debits before credits General Journal Debit Credit Date Nov 01, 2017 Record entry Clear entry View general journal

Answer 1

General Journal

Date	Account Title and Explanation	Debit	Credit
Nov.1.2017	Note Receivable	$107,000
	Cash		$107,000
Dec.31.2017	Interest Receivable	$1,605
	Interest Revenue		$1,605
April.30.2018	Cash	$4,815
	Interest Receivable		$1,605
	Interest Revenue		$3,210
Oct.31.2018	Cash	$4,815
	Interest Revenue		$4,815
	Cash	$107,000
	Note Receivable		$107,000

Explanation;

Dec.31.2017 ; Interest Revenue = $107,000 *9%*2/12 = $1,605

April.30.2018 : Interest Revenue = $107,000*9%*4/12 = $3,210

Oct.31.2018 : Interest Revenue = $107,000*9%*6/12 = $4,815