C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $40,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31. Required: Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) 1. When the note is established 2. Prepare the journal entries to accrue interest on June 30 and December 31. 3. to record the principal payment at the maturity date View transaction list Journal entry worksheet 1 2 3 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PA8-3 (Algo) Recording Notes Receivable Transactions (LO 8-3]
C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the
arrangement, CSM agreed on February 28, 2021, to advance Jeff $40,000 on a one-year, 7 percent note, with interest to be paid at
maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31.
Required:
Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in
the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.)
1. When the note is established
2. Prepare the journal entries to accrue interest on June 30 and December 31.
3. to record the principal payment at the maturity date
View transaction list
Journal entry worksheet
1 2 3 4 5
>
Record the receipt of a note on February 28, 2021 for a $40,000 loan to an
employee.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
February 28, 2021
Record entry
Clear entry
View general joumal
Transcribed Image Text:PA8-3 (Algo) Recording Notes Receivable Transactions (LO 8-3] C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $40,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31. Required: Prepare the journal entries that CSM will make: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount.) 1. When the note is established 2. Prepare the journal entries to accrue interest on June 30 and December 31. 3. to record the principal payment at the maturity date View transaction list Journal entry worksheet 1 2 3 4 5 > Record the receipt of a note on February 28, 2021 for a $40,000 loan to an employee. Note: Enter debits before credits. Date General Journal Debit Credit February 28, 2021 Record entry Clear entry View general joumal
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