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
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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