On April 1, 2018, 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 $580,000 to its supplier using a
12-month, 10% note.
1. The loan of $580,000 and acceptance of the
note receivable on April 1, 2018.
2. The adjustment for accrued interest on December 31, 2018.
3. Cash collection of the note and interest on April 1, 2019.
Record the above transactions for Shoemaker Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the note.
Note: Enter debits before credits.
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