Question

On

JuneJune

​6,

SouthsideSouthside

Bank​ & Trust lent

$ 90 comma 000$90,000

to

Steve StoneSteve Stone

on a

6060​-day,

66​%

note.

Requirements

1.	Journalize for SouthsideSouthside the lending of the money on JuneJune 6.
2.	Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.

Requirement 1. Journalize for

SouthsideSouthside

the lending of the money on

JuneJune

6. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Date		Accounts and Explanation	Debit	Credit
Jun.	6	Note Receivable—Steve Stone	90,000
		Cash		90,000
		Lent money to Steve Stone.

Requirement 2. Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry table. For notes stated in​ days, use a

365365​-day

​year.)

Answer 1

Date	Account title	Debit	credit
June 6	Note receivable - Steve stone	90000
	cash		90000
5 August	Cash	90888
	Interest revenue		888
	Note receivable - Steve stone		90000

**Being interest earned :principal amount *interest rate *n/365

                      = 90000*6%*60/365

                        = 888