On September 30, 2025, First Bank loaned $88,000 to Kaine Construction on a one-year, 12% note. First

Question:

On September 30, 2025, First Bank loaned $88,000 to Kaine Construction on a one-year, 12% note. First Bank’s fiscal year ends on December 31.

Requirements

1. Journalize all entries for First Bank related to the note for 2025 and 2026.

2. Which party has

a. A note receivable?

b. A note payable?

c. Interest revenue?

d. Interest expense?

3. Suppose that Kaine Construction defaulted on the note. What entry would First Bank record for the dishonored note?

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Related Book For answer-question

Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9780137858651

8th Edition

Authors: Tracie Miller Nobles, Brenda Mattison

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Question Posted: Jun 25, 2023 12:48 AM

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On September 30, 2025, First Bank loaned $88,000 to Kaine Construction on a one-year, 12% note. First

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Journalize all entries for First Bank related to the note for 2025 and 2026 a On September 30 2025 when the loan was issued Date September 30 2025 Deb...View the full answer

Horngrens Financial And Managerial Accounting The Financial Chapters

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