PA$8-3($Algo$)$ Recording Notes Receivable Transactions $[$LO $8-3]$

C&S Marketing $($CSM$)$ recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February $28,2021,$ to advance Jeff $$30,000$ on a one$-$year, $7$ percent note, with interest to be paid at maturity on February $28,2022$ CSM prepares financial statements on June $30$ and December $31.$

Required:

Prepare the journal entries that CSM will make: $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.$)$

When the note is established

To record the interest accruals at each quarter$-$end and interest payments at each payment date

to record the principal payment at the maturity date

Journal entry worksheet

$1,2,3,4,5$

Record the receipt of a note on February $28,2021$ for a $$30,000$ Ioan to an employee.

Prev.

$5$ of $5$

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