Question

On June 30, 2018, Oak Bank loaned 584,000 to Kim Dunkelberg on a one-year, 12% note Oak's fiscal year ends on December 31 Read the requirements Requirements Accrued interest revenue Journalize the collection of the note from Kim Dunkelberg at maturity Date Accounts and Explanation 2019 1. Journalize all entries for Oak Bank related to the note for 2018 and 2 2. Which party has a a. note receivable? b. note payable? c. interest revenue? d. interest expense? 3. Suppose that Kim Dunkelberg defaulted on the note. What entry would record for the dishonored note? Jun 30 Print Done Choose from any list or enter any number in the input fields and then click Check Answer 2 parts Clear All remaining Type here to search OP

Answer 1

Jounral Entries in the books of Oak Bank ($)

June 30, 2020	Notes Receivable Dr	84,000
	To Cash		84,000
	(Loaned)
Dec 31, 2020	Interest Receivable Dr	5,040
	To Interest Revenue (84000×12%×6/12)		5,040
	(Accrued for the year)
June 30, 2021	Cash Dr (84000+84,000×12%)	94,080
	To Interest Receivable		5,040
	To Interest Revenue (84000×12%×6/12)		5,040
	To Notes Receivables		84,000
	(Cash against notes received and interest thereon)

2.

1. Oak bank has notes Receivables
2. Kim Dunkelberg has Notes Payable
3. Oak bank has Interest Revenue
4. Kim Dunkelberg has Intrest Expense

3. For dishonor the entry is:

30 June 2020	Accounts Receivable Dr	94,080
	To Notes Receivable		84,000
	To Interest Revenue		5040
	To interest receivables		5040