Question

Save Homework: Chapter 5 Homework Score: 0.5 of 2 pts 9 of 12 (9 complete) S5-10 (similar to) HW Score: 57.5%, 11.5 of 20 pts Question Help On August 31, 2018, Barb Tisdale borrowed $11,000 from Green State Bank. Tisdale signed a note payable, promising to pay the bank principal plus interest on August 31, 2019. The interest rate on the note is 9%. The accounting year of Green State Bank ends on June 30, 2019. Journalize Green State Bank's (a) lending money on the note receivable at August 31, 2018. (b) accrual of interest at June 30, 2019, and (c) collection of principal and interest at August 31, 2019, the maturity date of the note Joumalize Green State Bank's (a) lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019, and (c) collection of principal and interest at August 31, 2019, the maturity date of the note. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) Prepare the journal entry for the issuance of the note receivable on August 31, 2018 Journal Entry Date Credit Accounts Note Receivable - Barb Tisdale Cash Debit 11,000 2018 Aug 31 11,000 (b) Prepare the journal entry to record the accrual of interest at June 30, 2019 Journal Entry Accounts Debit Credit Date 2019 Jun 30

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Credit 11000 Answer Part 1) Journal entry Date Accounts debit 2018 Note Receivable - Barb Tisdale Aug 31 Cash Part 2) Journal entry Date Accounts Idebit 2019 interest Receivable June. 31 Interest revenue 11000 Interest revenue for the year ended June 30,2019 - amount of note interest rate 10/12 = 110009% 10/12 = $ 825 debit Credit 11990 Part 3) Journal entry Date Accounts 2019 Cash Aug-31 Interest revenue Interest Receivable Note Receivable - Barb Tisdale Interest revenue for the period 1 july 2019 to Aug 31,2019 1 - amount of note *interest rate 2/12 - 11000.9% 2/12 = $ 165 cb100 cb10cboten 165 825 110001 L. LL LL