On August 1, Taylor Company lent S80 ,000 to L King on a 90-day, 5% note. 12. Jo

Question

On August 1, Taylor Company lent S80 ,000 to L King on a 90-day, 5% note. 12. Journalize for Taylor Company the lending of the money on August 1 13. Journalize the collection of the principal and interest at maturity Specify the date. Round interest to the nearest dollar 12. Journalize for Taylor Company the lending of the money on August 1. (Record debits first. then, credits Select the expl entry table For notes stated in days, use a 365-day year) Date Accounts and Explanation Debit Credit Aug 1 13. Journalize the collection of the principal and interest at maturity Specify the date. Round interest to the nearest dollar

Explanation / Answer

Journal entry

Date accounts & explanation debit credit Aug 1 Notes receivable 80000      Cash 80000 (To record money lent) Oct 30 Cash 80986      Notes receivable 80000     Interest revenue (80000*5%*90/365) 986 (To record collection of note)

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