On April 1, 2021, Shoemaker Corporation realizes that one of its
main suppliers is having difficulty meeting delivery schedules,
which is hurting Shoemaker's business. The supplier explains that
it has a temporary lack of funds that is slowing its production
cycle. Shoemaker agrees to lend $430,000 to its supplier using a
12-month, 10% note.
Required:
The loan of $430,000 and acceptance of the note receivable on April 1, 2021.
The adjustment for accrued interest on December 31, 2021.
Cash collection of the note and interest on April 1, 2022.
Record the above transactions for Shoemaker Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Requirement:- Record the transactions for Shoemaker Corporation.
1. The loan of $430,000 and acceptance of the note receivable on April 1, 2021.
2. The adjustment for accrued interest on December 31, 2021.
3. Cash collection of the note and interest on April 1, 2022.
I Hope I was able to help you. Please give me a THUMBS UP.
Thank you!!
Get Answers For Free
Most questions answered within 1 hours.