Question

To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under formal contracts, provided that they use it to renovate their store space. On November 1, 2017, the company loaned $90,000 to a new tenant on a one-year note with a stated annual interest rate of 9 percent. Interest is to be received by Marketplace Mall on April 30, 2018, and at maturity on October 31, 2018.

Required:

Prepare journal entries that Marketplace Mall would record related to this note on the following dates: (a) November 1, 2017; (b) December 31, 2017 (Marketplace Mall’s fiscal year-end); (c) April 30, 2018; and (d) October 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1,

Record the receipt of a note on November 1, 2017 for a $90,000 loan to a new tenant.

2.

Record the interest accrued on the notes as of December 31, 2017.

3.

Record the receipt of interest for the period ending April 30, 2018.

4.

Record the receipt of the interest on the note’s maturity date.

5.

Record the receipt of the payment for the full principal.

Answer 1