M$8-11($Static$)$ Recording Notes Receivable Transactions $[$LO $8-3]$

Nova Corporation hired a new product manager and agreed to provide her a $$20,000$ relocation loan on a six$-$month, $7$ percent note.

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points

a$.$ The company loans the money on January $1.$

b$.$ The new employee pays Nova the interest owed on the maturity date.

c$.$ The new employee pays Nova the full principal owed on the maturity date.

Required:

Prepare journal entries to record the above transactions for Nova Corporation. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Do not round intermediate calculations.$)$

Journal entry worksheet

$1$

$2$

$3$

The company loans the money on January $1.$ Record the transaction.

Note: Enter debits before credits.