Hope Still, chief executive of Great Divide Technologies (GDT), a state-certified aircraft repair company, worked with her local bank to get a $210,000 loan under the Paycheck Protection Program in early May of 2020 that allowed her to keep paying her 19 employees. The loan would be fully forgiven if GDT uses at least 60% of the funds for payroll costs and the remainder for Interest on mortgages. rent, and utilities. Otherwise, the loan plus 1% accrued annual Interest must be repaid after two years. The company recorded the loan with a $210,000 credit to note payable. Required: Prepare the appropriate journal entry GDT would record when, after two years. It's determined that the conditions for debt forgiveness will not be met. Assume that accrued Interest had been recorded with debits to Interest expense and credits to the note payable. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction Bat Journal entry worksheet Record the settlement of note payable after two years, if it's determined that the conditions for debt forgiveness will not be met. Note: Enter debits before credits. Event 1 General Journal Debit Credit

Hope Still, chief executive of Great Divide Technologies (GDT), a state-certified aircraft repair company, worked with her local bank to get a $210,000 loan under the Paycheck Protection Program in early May of 2020 that allowed her to keep paying her 19 employees. The loan would be fully forgiven if GDT uses at least 60% of the funds for payroll costs and the remainder for Interest on mortgages. rent, and utilities. Otherwise, the loan plus 1% accrued annual Interest must be repaid after two years. The company recorded the loan with a $210,000 credit to note payable. Required: Prepare the appropriate journal entry GDT would record when, after two years. It's determined that the conditions for debt forgiveness will not be met. Assume that accrued Interest had been recorded with debits to Interest expense and credits to the note payable. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction Bat Journal entry worksheet Record the settlement of note payable after two years, if it's determined that the conditions for debt forgiveness will not be met. Note: Enter debits before credits. Event 1 General Journal Debit Credit

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 42P: Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible...

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