The following transactions took place for Parker\'s Grocery. a. Jan. 1 Loaned S5
ID: 2544673 • Letter: T
Question
The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned S58,000 to a cashier of the company and received back a one-year, 9 percent b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. Required: Prepare the journal entries that Parker's Grocery would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the receipt of a note on January 1 for a $58,000 loan to an employee Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journalExplanation / Answer
Date
Ledgers
Dr/Cr
Amount
Comment/explanation
Jan 01
9% note from cashier
Dr
58,000
Note received in exchange of cash
Cash/Bank
Cr
58,000
30 June
Accrued interest
Dr
2,610
58,000*9%/2
Interest income
Cr
2,610
Interest accrued, calculation as above
31 Dec
Accrued interest
Dr
2,610
58,000*9%/2
Interest income
Cr
2,610
Interest accrued, calculation as above
Cash/Bank
Dr
5,220
Accrued interest collected
Accrued interest
Cr
5,220
Cash/Bank
Dr
58,000
Receipt of principal on note
9% note from cashier
Cr
58,000
Date
Ledgers
Dr/Cr
Amount
Comment/explanation
Jan 01
9% note from cashier
Dr
58,000
Note received in exchange of cash
Cash/Bank
Cr
58,000
30 June
Accrued interest
Dr
2,610
58,000*9%/2
Interest income
Cr
2,610
Interest accrued, calculation as above
31 Dec
Accrued interest
Dr
2,610
58,000*9%/2
Interest income
Cr
2,610
Interest accrued, calculation as above
Cash/Bank
Dr
5,220
Accrued interest collected
Accrued interest
Cr
5,220
Cash/Bank
Dr
58,000
Receipt of principal on note
9% note from cashier
Cr
58,000
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