Question: Jenny Kane and Cindy Travis borrowed 15 000 on a 7 month

Jenny Kane and Cindy Travis borrowed $15,000 on a 7-month, 8% note from Golden State Bank to open their business, KT’s Coffee House. The money was borrowed on June 1, 2014, and the note matures January 1, 2015.

Instructions
(a) Prepare the entry to record the receipt of the funds from the loan.
(b) Prepare the entry to accrue the interest on June 30.
(c) Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at December 31, 2014.
(d) Prepare the entry required on January 1, 2015, when the loan is paid back.


View Solution:


Sale on SolutionInn
Sales33
Views2006
Comments
  • CreatedApril 07, 2014
  • Files Included
Post your question
5000