Question

The balance sheet for Carla Vista Co. reports the following information on July 1, 2022.

The balance sheet for Carla Vista Co. reports the following information on July 1, 2022. 

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Carla Vista decides to redeem these bonds at 105 after paying annual interest.  

Prepare the journal entry to record the redemption on July 1, 2022.



Kelly Jones and Tami Crawford borrowed $13,200 on a 7 month, 5% note from Gem State Bank to open their business, Crane's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. 

Prepare the entry to record the receipt of the funds from the loan. 


Prepare the entry to accrue the interest on June 30.

Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31. 2022. Balance in interest payable account $ _______ 


Prepare the entry required on January 1, 2023, when the loan is paid back.


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