Question

On September 30, 2013, Synergy Bank loaned $ 88,000 to Kendall Kelsing on a one-year, 12% note. Synergy’s fiscal year ends on December 31.

Requirements
1. Journalize all entries for Synergy Bank related to the note for 2013 and 2014.
2. Which party has a
a. Note receivable?
b. Note payable?
c. interest revenue?
d. Interest expense?
3. Suppose that Kendall Kelsing defaulted on the note. What entry would Synergy record for the dishonored note?



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  • CreatedJanuary 16, 2015
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