On October 1 you lent $10,000 to your accounting teacher (foolish move) at 15% interest (wise move).

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On October 1 you lent $10,000 to your accounting teacher (foolish move) at 15% interest (wise move). The money is due to be repaid in four (4) months.

Prepare the entry to record you lending the money.

Prepare the adjusting entry you as the lender would make on December 31 for the interest accrued on this note.

Record your collection of the note and interest at maturity (when it is repaid)

What would be the impact on the financial statement, (Revenues, Expenses, Net income, Assets, Liabilities, Owners' equity).

If you do not make this adjusting entry?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Jun 02, 2023 12:58 AM

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On October 1 you lent $10,000 to your accounting teacher (foolish move) at 15% interest (wise move).

Question:

Expert Answer:

Entry to record lending the money on October 1 Debit Notes Receivable 10000 Credit Cash 10000 Adjust... View the full answer

Principles of Finance

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