The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $70,000 to an

Question:

The following transactions took place for Smart Solutions Inc.

2017

a. July 1 Loaned $70,000 to an employee of the company and received back a one-year, 10 percent note.

b. Dec. 31 Accrued interest on the note.

2018

c. July 1 Received interest on the note. (No interest has been recorded since December 31.)

d. July 1 Received principal on the note.

Required:

Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.

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Related Book For answer-question

Fundamentals of Financial Accounting

ISBN: 978-1259864230

6th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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Question Posted: Jul 15, 2019 12:59 PM

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The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $70,000 to an

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a July 1 2017 Notes Receivable 70000 Cash 70000 b Dec 31 2017 Interest Receivable 3500 In...View the full answer

Fundamentals of Financial Accounting

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