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 $100,000 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 Malll 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.)

Answer 1

Nov. 1,2017	Notes receivable	100000
	Cash		100000
Dec. 31,2017	Interest receivable	1500		=100000*9%*2/12
	Interest revenue		1500
Apr. 30,2018	Cash	4500
	Interest receivable		1500
	Interest revenue		3000	=100000*9%*4/12
Oct. 31,2018	Cash	4500		=100000*9%*6/12
	Interest revenue		4500
Oct. 31,2018	Cash	100000
	Notes receivable		100000