Nova Corporation hired a new product manager and agreed to provide her a $31,000 relocation loan on a six-month, 6 percent note. a. The company loans the money on January 1. b. The new employee pays Nova the interest owed on the maturity date. c. The new employee pays Nova the full principal owed on the maturity date. Prepare journal entries to record the above transactions for Nova Corporation. (If no entry Is requlred for a transaction/event, select "No Journal Entry Requlred" In the first account fleld. Do not round Intermedlate calculations.) View transaction list Journal entry worksheet <> The company loans the money on January 1. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Clear entry View general journal Record entry

Nova Corporation hired a new product manager and agreed to provide her a $31,000 relocation loan on a six-month, 6 percent note. a. The company loans the money on January 1. b. The new employee pays Nova the interest owed on the maturity date. c. The new employee pays Nova the full principal owed on the maturity date. Prepare journal entries to record the above transactions for Nova Corporation. (If no entry Is requlred for a transaction/event, select "No Journal Entry Requlred" In the first account fleld. Do not round Intermedlate calculations.) View transaction list Journal entry worksheet <> The company loans the money on January 1. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Clear entry View general journal Record entry

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.7 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 9% promissory note. Interest is payable at maturity. Company A's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company A. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet 1 2 Record the repayment of the note at maturity. Note: Enter debits before credits. Date General Journal Debit Credit January 31
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