Question

Exercise 10-1 (Part Level Submission) Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018. Collapse question part (a) Correct answer. Your answer is correct. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 2 of 15 used Collapse question part (b) Correct answer. Your answer is correct.

Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30

This is a 2 part question, please answer both parts. Thank you.

Answer 1

Journal entry

No	Date	account and explanation	debit	credit
1	June 1	Cash	11143
		Notes payable		11143
		(To record borrow)
2	June 30	Interest expense (11143*7%*1/12)	65
		Interest payable		65
		(To record interest)