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On May 1, 2017, a company lends $600,000 to one of its main suppliers and accpets...

On May 1, 2017, a company lends $600,000 to one of its main suppliers and accpets a 12-month, 6% note. Record the acceptance of the note on May 1, 2017, the adjustment on December 31, 2017, and the cash collection on May 1, 2018.

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Answer #1
1-May-17 Notes receivable 600000
         Cash 600000
31-Dec Interest receivable 24000 =600000*6%/12*8
        Interest revenue 24000
1-May-18 Cash 636000
        Interest receivable 24000
        Interest revenue 12000
        Notes receivable 600000
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