Question

Bonny Williams and Natalie Martinez borrowed $15,000 on a 7-month, 4% 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.

(a) Prepare a tabular summary to record the receipt of the funds from the loan.

(b) Prepare a tabular summary to accrue the interest on June 30.

(d) Prepare a tabular summary to record the repayment of the loan on January 1, 2018.

Essen > Open Assignment CALCULATE INTE L ities or Stockholders' Equity place a negative signor parentheses) is front of the amount entered for the partic ASSIGNMENT RESOURCES Chapter SA Homework (If transaction causes a decrease in Ass Equity item that was reduced Liabilities Evet Steckholders' Equity Retained Earnings • Expense - Dividend Cash Notes Pay. Interest Pay. Common Stock Review Score Review News by sy (a) June 1, 2017 ( 30, 2017 on 1 2018 SHES Assuming tests are made at the end of each month determinate balance in the Interest Payable count at December 31, 2017 Balance interest avable account VIDEO SIMILARES VIDEO SIRILAREERISE

Answer 1

	WORKING NOTES:1	CALCUATION OF INTEREST ACCRUED AS ON JUNE 30, 2017
		Amount borrowed value =				15000
		Interest = $ 15,000 X 4% / 12 month =				50
	WORKING NOTES:2	CALCULATION OF INTEREST EXPENSES AS ON JAN 01, 2018
		Amount borrowed value =				15000
		Interest = $ 15,000 X 4% x6 / 12 month =				300
	SOLUTION :
		ASSETS	=	LIABILITIES			+	STOCKHOLDER'S EQUITY
										RETAINED EARNINGS
		Cash	=	Notes Payable	+	Interest Payable	+	Common Stock	+	REVENUE	-	Expenses	-	Dividend
	A - June 01, 2017	$                         15,000	=	$                   15,000
	B - June 30, 2017	$                                  -	=	$                             -		$                               50	+	$                                       -	+	$                                       -	-	$                                   50	-	$                  -
	C - January 01, 2018	$                       -15,350	=	$                  -15,000		$                             -50		$                                       -	+	$                                       -	-	$                                 300	-	$                  -