Use the "CCC10" Excel template to complete the accounting requirements for Cookie Creations in chapter 10 of the textbook. Work with your team to determine the correct answers. One person should submit the final assignment to the assignment dropbox.
Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2011, from Natalie’s grandmother.
Interest on the note is 9% per year, and the note plus interest was to be repaid in 24 months. Recall that a monthly adjusting journal entry was prepared for the months of November 2011 (1/2 month), December 2011, and January 2012.
(a) Calculate the interest payable that was accrued and recorded to January 31, 2012.
Round to nearest dollar.
(b) Calculate the total interest expense and interest payable from February 1 to August 31, 2012. Prepare the journal entry at August 31, 2012, to bring the accounting records up to date. Round to nearest dollar.
(c) Natalie repays her grandmother on September 15, 2012—10 months after her grandmother extended the loan to Cookie Creations. Prepare the journal entry for the loan repayment.