On August $1,2023,$ Shark loaned $$20,000\mathrm{.}00$ to Needs A Break Corp.

The terms are

Six$-$month note due January $30,2024$

Interest Rate $9\mathrm{.}00\%$

Interest and principle to be paid on the due date.

REQUIREMENTS

a$.$ Record on Shark's books the August $1,2023$ loan to Needs a Break Corp.

b$.$ Record Shark's December $31,2023$ adjusting entries to recognize the interest earned

c$.$ Prepare the closing entry to close the income of interested earned as of December $31$

d$.$ Record Shark's January $30,2024$ receipt of cash from Needs A Break Corp.

e$.$ What is Shark's interest revenue in $2023$ and $2024$

f$.$ Show Shark's cash receipts for $2023$ and $2024$

Date Account Debit Credit

$1-$Aug Notes Receivable $20,000\mathrm{.}00$

Cash $20,000\mathrm{.}00$

$31-$Dec Interest Receivable

Interest Income

$31-$Dec Interest Income

Retained earnings

$31-$Jan Cash

Interest Receivable

Interest Income

Notes Receivable

$20232024$

d$.$ Interest Revenue

e$.$ Cash Received