92 SOLID FOOTING Chapter 7 - Adjusting Entries Problem 7-7 Take-Out a Loan - Accrue Interest on the Loan - Pay Interest On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are the terms and other information pertaining to the loan: Amount of the loan How long the loan is for (the term of the loan) Date the loan was made........ Date of first interest payment to the bank Amount of interest charged by the bank for April Amount of interest charged by the bank for May Amount of interest charged by the bank for June $100,000 1 year April 1, 2021 June 30, 2021 $550 $568 $550 The following is a partial list of the accounts in Baker's General Ledger. These are the only accounts you need for this problem. Cash Note Payable Interest Payable Interest Expense Use the forms on Tab 7-7. in the Excel file workbook Chapter 07 c - Problem 7-1 to 7-8 Forms to complete this problem. Requirement 1 Prepare the April 1, 2021 General Journal entry to record getting the loan from the bank. Requirement 2 Prepare the April 30, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of April. Requirement 3 Prepare the May 31, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of May. Requirement 4 Prepare the June 30, 2021 General Journal entry to record the payment of the April, May, and June interest to the bank. Hint: For help with how this interest payment should be recorded: Look at March 30 - Interest Payment to the Bank starting on Pg 57 in the file 06 - Accounting Cycle.pdf Look at the March 30 interest payment transaction (Pay Interest button) on the March tab of the Excel 02-Gray Co workbook. Problem 7-7 Take-Out a Loan -- Accrue Interest on the Loan Requirement 1 - April 1 get the loan from the bank Date Account Name -- Pay Interest Requirement 2 - April 30 interest accrual adjusting entry Date Account Name Requirement 3 - May 31 interest accrual adjusting entry Date Account Name Debit Credit Debit Credit Debit Credit Requirement 4 - Payment of the April, May, and June interest to the bank Date Account Name Debit Credit