Exercise 10-1 Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% no
ID: 2513960 • Letter: E
Question
Exercise 10-1
Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018.
Date
Account Titles and Explanation
Debit
Credit
June 1
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
June 30
SHOW LIST OF ACCOUNTS
LINK TO TEXT
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2018
Exercise 10-1
Kelly Jones and Tami Crawford borrowed $11,143 on a 7-month, 7% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018.
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr June 01 Cash Dr 11,143.00 To Note Payable 11,143.00 June 30 Interest Expense Dr 65.00 To Interest Payable 65.00 (11143*7%/12) At Dec 31 Balance in Interest Payable Account= 65*7 455.00 Jan 01 2018 Note Payable Dr 11,143.00 Interest payable DR 455.00 To Cash 11,598.00
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