Question

Kelly Jones and Tami Crawford borrowed $15,750 on a 7-month, 8% note from Gem State Bank to open their business, Blossom’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.

Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	enter an account title to record the receipt of the funds from the loan on June 1	enter a debit amount	enter a credit amount
	enter an account title to record the receipt of the funds from the loan on June 1	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	enter an account title to accrue the interest on June 30	enter a debit amount	enter a credit amount
	enter an account title to accrue the interest on June 30	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

  

  

Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2022.

Balance in interest payable account

$enter the Balance in interest payable account in dollars

eTextbook and Media

List of Accounts

  

  

Prepare the entry required on January 1, 2023, when the loan is paid back. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2023	enter an account title on January 1	enter a debit amount	enter a credit amount
	enter an account title on January 1	enter a debit amount	enter a credit amount
	enter an account title on January 1	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Answer 1