Question

Hive Company borrows $90,000 on July 1 from the bank by signing a $90,000, 7%, 1-year note payable.

(a)

Prepare the journal entry to record the proceeds of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1	enter an account title to record the proceeds of the note	enter a debit amount	enter a credit amount
	enter an account title to record the proceeds of the note	enter a debit amount	enter a credit amount

(b)

Prepare the journal entry to record the accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title to record the accrued interest at December 31	enter a debit amount	enter a credit amount
	enter an account title to record the accrued interest at December 31

NUMBER 2

Bramble University sells 3,500 season basketball tickets at $80 each for its 10-game home schedule.

(a)

Give the entry to record the sale of the season tickets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title to record the sale of the season tickets	enter a debit amount	enter a credit amount
enter an account title to record the sale of the season tickets	enter a debit amount	enter a credit amount

(b)

Give the entry to record the revenue recognized after playing the first home game. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title to record the revenue recognized after playing the first home game	enter a debit amount	enter a credit amount
enter an account title to record the revenue recognized after playing the first home game	enter a debit amount	enter a credit amount

Answer 1