On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are the terms and other information pertaining to the loan: Amount of the loan ............................................................ $100,000 How long the loan is for (the term of the loan) ................... 1 year Date the loan was made .................................................... April 1, 2021 Date of first interest payment to the bank ........................... June 30, 2021 Amount of interest charged by the bank for April ............... $550 Amount of interest charged by the bank for May ................ $568 Amount of interest charged by the bank for June ............... $550 The following is a partial list of the accounts in Baker’s General Ledger. These are the only accounts you need for this problem. Cash Note Payable Interest Payable Interest Expense Requirement 1 Prepare the April 1, 2021 General Journal entry to record getting the loan from the bank. Requirement 2 Prepare the April 30, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of April. Requirement 3 Prepare the May 31, 2021 General Journal adjusting entry to accrue the interest owed to the bank for the month of May. Requirement 4 Prepare the June 30, 2021 General Journal entry to record the payment of the April, May, and June interest to the bank.
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On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are
the terms and other information pertaining to the loan:
Amount of the loan ............................................................ $100,000
How long the loan is for (the term of the loan) ................... 1 year
Date the loan was made .................................................... April 1, 2021
Date of first interest payment to the bank ........................... June 30, 2021
Amount of interest charged by the bank for April ............... $550
Amount of interest charged by the bank for May ................ $568
Amount of interest charged by the bank for June ............... $550
The following is a partial list of the accounts in Baker’s General Ledger. These are the only
accounts you need for this problem.
Cash
Note Payable
Interest Payable
Interest Expense
Requirement 1
Prepare the April 1, 2021 General
Requirement 2
Prepare the April 30, 2021 General Journal
bank for the month of April.
Requirement 3
Prepare the May 31, 2021 General Journal adjusting entry to accrue the interest owed to the
bank for the month of May.
Requirement 4
Prepare the June 30, 2021 General Journal entry to record the payment of the April, May, and
June interest to the bank.
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