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C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement. CSM agreed on February 28, 2018, to advance Jeff $35,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial statements on June 30 and December 31 Prepare the journal entry CSM will make when the note is established, accrue interest on June 30 and December 31, and the interest and principal payments on February 28, 2019. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) View transaction list Journal entry worksheet 2 3 4 5 Record the receipt of a note on February 28, 2018 for a $35,000 loan to an employee. Note: Enter debits before credits General Journal Debit Credit Date Feb 28, 2018 |

Answer 1

Answer:

Date	General Journal	Debit ($)	Credit ($)	Working
Feb 28,2018	Notes receivable	$35,000
	Cash		$35,000
June 30,2018	Interest receivable	$817		=35000*7%*4/12
	Interest revenue		$817
Dec 31,2018	Interest receivable	$1,225		=35000*7%*6/12
	Interest revenue		$1,225
Feb 28,2019	Cash	$2,450
	Interest receivable		$2,042
	Interest revenue		$408	=35000*7%*2/12
Feb 28,2019	Cash	$35,000
	Notes receivable		$35,000