Nova Corporation hired a new product manager and agreed to provide her a $20,000

Question

Nova Corporation hired a new product manager and agreed to provide her a $20,000 relocation loan on a six-month, 7 percent note. a. The company loans the money on January 1, 2013. b. The new employee pays Nova the interest owned on the maturity date. c. The new employee pays Nova the full principal owned on the maturity date. 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.) view transaction list view general journal Journal Entry Worksheet Record the receipt of a note for $20,000 loan to an employee. Date January 01, 2013 General Journal Debit Credit Enter debits before credits clear entry record entry

Explanation / Answer

01/01/2013 Note Receivable 20000           To Cash 20000 30/06/2013 Interest on Note Receivable 700              To Interest Income 700 Cash 700 30/06/2013         To Interest on Note Receivable 700 30/06/2013 Cash 20000         To Note Receivable 2000

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