On December 11, 2010, the Hooper Bank loans a customer $12,000 on a 60-day, 12% note. Required

Question:

On December 11, 2010, the Hooper Bank loans a customer $12,000 on a 60-day, 12% note.

Required
Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2010, and the customer’s repayment on February 9, 2011, assuming:
1. Interest was assessed in addition to the of the note.
2. The note was issued as a $12,000 non-interest-bearing note.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...