Nancy Daniel and Karen borrowed $15,750 on a 7-month, 8% note from Gem State Bank to open their business, Blossom's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. (a)-(b), (d) (a) (b) (d) Prepare a tabular summary to record the receipt of the funds from the loan. Prepare a tabular summary to accrue the interest on June 30. Prepare a tabular summary to record the repayment of the loan on January 1, 2023. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets,
Nancy Daniel and Karen borrowed $15,750 on a 7-month, 8% note from Gem State Bank to open their business, Blossom's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. (a)-(b), (d) (a) (b) (d) Prepare a tabular summary to record the receipt of the funds from the loan. Prepare a tabular summary to accrue the interest on June 30. Prepare a tabular summary to record the repayment of the loan on January 1, 2023. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nancy Daniel and Karen borrowed $15,750 on a 7-month, 8% note from Gem State Bank to open their business, Blossom's Coffee
House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.
(a)-(b). (d)
(a)
(b)
(d)
Prepare a tabular summary to record the receipt of the funds from the loan.
Prepare a tabular summary to accrue the interest on June 30.
Prepare a tabular summary to record the repayment of the loan on January 1, 2023.
Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets,
Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular
Asset, Liability or Equity item that was reduced.)
(a) June 1.2022 $
(b) June 30, 2022
(d) Jan 1, 2023
Assets
Cash
Notes Pay.
Liabilities
Interest Pay
$
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