Question

Need help with general journal.

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 $45,000 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.)

Answer 1

1.

Date	General Journal	Debit	Credit
Feb 28, 2018	Note receivable	45,000
	Cash		45,000

2.

Date	General Journal	Debit	Credit
June 30, 2018	Interest receivable	1,050
	Interest revenue		1,050

3.

Date	General Journal	Debit	Credit
Dec 31, 2018	Interest receivable	1,575
	Interest revenue		1,575

4.

Date	General Journal	Debit	Credit
Feb 28, 2019	Cash	3,150
	Interest receivable		2,625
	Interest revenue		525

5.

Date	General Journal	Debit	Credit
Feb 28, 2019	Cash	45,000
	Note receivable		45,000

Interest receivable on June 30, 2018 = 45,000 x 7% x 4/12

= $1,050

Interest receivable on December 31, 2018 = 45,000 x 7% x 6/12

= $1,575

Interest receivable on February 28, 2019 = 45,000 x 7% x 2/12

= $525

Kindly comment if you need further assistance.

Thanks‼!