Question

E8-11 Recording Note Receivable Transactions, Including Accrual Adjustment for Interest (LO 8-3) The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned $53,000 to a cashier of the company and received back a one-year, 8 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. Book Required: Prepare the journal entries that Parker's Grocery would record for the above transactions, alf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Hint Print ferences View transaction list Journal entry worksheet 2 3 4 Record the receipt of a note on January 1 for a $53,000 loan to an employee. Note: Enter debits before credits Date General Journal Debit Credit Jan 01

Answer 1

Date	Account	Debit	Credit
Jan 1	Notes Receivable	53,000
	Cash		53,000
June 30	Interest receivable	2120
	Interest revenue		2120
	(53,000*8%*6/12)
Dec 31	Cash	4240
	Interest receivable		2120
	Interest revenue		2120
Dec 31	Cash	53,000
	Note receivable		53,000