Jenny Kanne and Cindy Travis borrowed $35,400 on a 7-month, 4% note from Golden
ID: 2453797 • Letter: J
Question
Jenny Kanne and Cindy Travis borrowed $35,400 on a 7-month, 4% note from Golden State Bank to open their business, KT's Coffee House. The money was borrowed on June 1, 2014, and the note matures on January 1, 2015.
A. Prepare the entry to record the receipt of the funs from the loan.
B. Prepare the entry to accrue the interest on June 30.
C. Assuming adjusting entries are made at the end of the month, determine the balance in the interest payable account on December 31, 2014.
Balance in interest payable account: $________
D. Prepare the entry required on January 1, 2015, when the loan is paid back.
Date Account Titles and Explanation Debit Credit June 1 June 1Explanation / Answer
A.Prepare the entry to record the receipt of the funs from the loan.
B. Prepare the entry to accrue the interest on June 30.
C. Assuming adjusting entries are made at the end of the month, determine the balance in the interest payable account on December 31, 2014.
Balance in interest payable account: $_826__
D. Prepare the entry required on January 1, 2015, when the loan is paid back.
Date Account Titles and Explanation Debit Credit June 1 Cash/Bank A/c 35400 June 1 Golden State Bank A/c 35400Related Questions
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