Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% note from Gem St
ID: 2523694 • Letter: K
Question
Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% 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
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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
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Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% 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
Journal entry :
Balance in interest payable account on december 31,2017 = 100*7 = 700
Date accounts & explanation debit credit June 1,2017 Cash 15000 Notes payable 15000 (To record notes payable) June 30,2017 Interest expense (15000*8%*1/12) 100 Interest payable 100 (To record accured interest)Related Questions
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