Nova Corporation hired a new product manager and agreed to provide her a $50,000
ID: 2455263 • Letter: N
Question
Nova Corporation hired a new product manager and agreed to provide her a $50,000 relocation loan on a six-month, 5 percent note.
Prepare journal entries to record the above transactions for Nova Corporation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
a. The company loans the money on January 1. b. The new employee pays Nova the interest owed on the maturity date. c. The new employee pays Nova the full principal owed on the maturity date.Explanation / Answer
Solution :
account tiltle
debit
credit
a
note receivable
50,000.00
cash
50,000.00
b
cash
1,250.00
interest
1,250.00
(50000 x 5%/2)
c
cash
50,000.00
note receivable
50,000.00
account tiltle
debit
credit
a
note receivable
50,000.00
cash
50,000.00
b
cash
1,250.00
interest
1,250.00
(50000 x 5%/2)
c
cash
50,000.00
note receivable
50,000.00
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