Question

The following transactions took place for Smart Solutions Inc. 2017 .. July 1 Loaned $62,000 to an employee of the company and received back a one-year, 10 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. 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 Journal entry worksheet < 1 2 3 4 Record the receipt of a note on July 1, 2017 for a $62,000 loan to an employee Note: Enter before credits General Journal Debit Credit Jul 01, 2017 Record entry View generada

Answer 1

Date	Accounts titles and explanation	Debit	Credit
Jul 1, 2017	Notes receivable	$62000
	Cash		$62000
	(To record given loan to employee and receipt a note)
Dec 31, 2017	Interest receivable (62000*10%*6/12)	$3100
	Interest revenue		$3100
	(To record interest accrued)
Jul 1, 2018	Cash (3100+3100)	$6200
	Interest receivable		$3100
	Interest revenue (62000*10%*6/12)		$3100
	(To record receipt of the interest on maturity date)
Jul 1, 2018	Cash	$62000
	Notes receivable		$62000
	(To record receipt of the full principal)