The following transactions took place for Smart Solutions Inc.
2012 July 1 Loaned $70,000 to an employee of the company and received back a one-year, 10 percent note.
Dec. 31 Accrued interest on the note.
2013 July 1 Received interest and principal on the note. (No interest has been recorded since December 31.)
Required:
Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.