Question

am totally confused

i need help right away

C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $30,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial statements on June 30 and December 31 Prepare the journal entry CSM will make when the note is established, accrue interest on June 30 and December 31, and the interest and principal payments on February 28, 2019. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) View transaction list

Answer 1

Credit Debit $ 30,000 Date General Journal Feb 28, 2018 Notes receivable (short-term) Cash (To record the receipt of a note) $ 30,000 $ 800 Jun 30, 2018 Interest receivable ($30,000*8%*4/12) Interest revenue (To record the interest accrued) $ 800 $ 1,200 Dec 31, 2018 Interest receivable ($30,000*8%*6/12) Interest revenue (To record the interest accrued) $ 1,200 $ 2,400 Feb 28, 2019 Cash Interest revenue ($30,000*8%*2/12) Interest receivable ($800+$1,200) (To record the receipt of the payment for interest) $ $ 400 2,000 $ 30,000 $ 30,000 Feb 28, 2019 Cash Notes receivable (short-term) (To record the receipt of the payment for principal on maturity)