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On April 1, 2023, 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 How long the loan is for (the term of the loan). Date the loan was made....... Date of first interest payment to the bank... Amount of interest charged by the bank for April Amount of interest charged by the bank for May. Amount of interest charged by the bank for June. $100,000 1 year April 1, 2023 June 30, 2023 $550 $568 $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.

On April 1, 2023, 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 How long the loan is for (the term of the loan). Date the loan was made....... Date of first interest payment to the bank... Amount of interest charged by the bank for April Amount of interest charged by the bank for May. Amount of interest charged by the bank for June. $100,000 1 year April 1, 2023 June 30, 2023 $550 $568 $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.

FINANCIAL ACCOUNTING
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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Requirement 4 Prepare the General Journal entry to record the wage payment made to the employees on Friday July 2nd. Hint: A portion of the wage payment is paying-off the Wages Payable liability that was recorded in the June 30th adjusting entry, and a portion of the wage payment is Wages Expense for the month of July. 92 SOLID FOOTING Problem 7-7 Take-Out a Loan - Accrue Interest on the Loan - Pay Interest On April 1, 2023, 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 How long the loan is for (the term of the loan) Date the loan was made Date of first interest payment to the bank Amount of interest charged by the bank for April Amount of interest charged by the bank for May Amount of interest charged by the bank for June Chapter 7 - Adjusting Entries ▷ Cash ▷Note Payable Interest Payable Interest Expense The following is a partial list of the accounts in Baker's General Ledger. These are the only accounts you need for this problem. $100,000 1 year April 1, 2023 June 30, 2023 $550 $568 $550 Use the forms on Tab 7-7 in the Excel file workbook Chapter 07 c - Problem 7-1 to 7-8 Forms to complete this problem. Requirement 1 Prepare the April 1, 2023 General Journal entry to record getting the loan from the bank. Requirement 2 Prepare the April 30, 2023 General Journal adjusting entry to accrue the interest owed to the bank for the month of April. Hint: For help with how this interest payment should be recorded: Requirement 3 Prepare the May 31, 2023 General Journal adjusting entry to accrue the interest owed to the bank for the month of May. Requirement 4 Prepare the June 30, 2023 General Journal entry to record the payment of the April, May, and June interest to the bank. Chapter 7 - Adjusting Entries ▷ Look at March 30- Interest Payment to the Bank starting on Pg 57 in the file 06- Accounting Cycle.pdf ▷ Look at the March 30 interest payment transaction (Pay Interest button) on the March tab of the Excel 02-Gray Co workbook. SOLID FOOTING 93 Problem 7-8 Accrue Rent Payable - Pay Rent the Following Month On September 1, 2023, Baker Construction, Inc. signed a contract to rent a warehouse. Baker's rent on the warehouse started that same day. On September 1, the landlord did not require Baker to pay the first month's rent. The landlord indicated that she would stop-by on October 5 to collect the $2,000 of rent for the month of September.
Transcribed Image Text:Requirement 4 Prepare the General Journal entry to record the wage payment made to the employees on Friday July 2nd. Hint: A portion of the wage payment is paying-off the Wages Payable liability that was recorded in the June 30th adjusting entry, and a portion of the wage payment is Wages Expense for the month of July. 92 SOLID FOOTING Problem 7-7 Take-Out a Loan - Accrue Interest on the Loan - Pay Interest On April 1, 2023, 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 How long the loan is for (the term of the loan) Date the loan was made Date of first interest payment to the bank Amount of interest charged by the bank for April Amount of interest charged by the bank for May Amount of interest charged by the bank for June Chapter 7 - Adjusting Entries ▷ Cash ▷Note Payable Interest Payable Interest Expense The following is a partial list of the accounts in Baker's General Ledger. These are the only accounts you need for this problem. $100,000 1 year April 1, 2023 June 30, 2023 $550 $568 $550 Use the forms on Tab 7-7 in the Excel file workbook Chapter 07 c - Problem 7-1 to 7-8 Forms to complete this problem. Requirement 1 Prepare the April 1, 2023 General Journal entry to record getting the loan from the bank. Requirement 2 Prepare the April 30, 2023 General Journal adjusting entry to accrue the interest owed to the bank for the month of April. Hint: For help with how this interest payment should be recorded: Requirement 3 Prepare the May 31, 2023 General Journal adjusting entry to accrue the interest owed to the bank for the month of May. Requirement 4 Prepare the June 30, 2023 General Journal entry to record the payment of the April, May, and June interest to the bank. Chapter 7 - Adjusting Entries ▷ Look at March 30- Interest Payment to the Bank starting on Pg 57 in the file 06- Accounting Cycle.pdf ▷ Look at the March 30 interest payment transaction (Pay Interest button) on the March tab of the Excel 02-Gray Co workbook. SOLID FOOTING 93 Problem 7-8 Accrue Rent Payable - Pay Rent the Following Month On September 1, 2023, Baker Construction, Inc. signed a contract to rent a warehouse. Baker's rent on the warehouse started that same day. On September 1, the landlord did not require Baker to pay the first month's rent. The landlord indicated that she would stop-by on October 5 to collect the $2,000 of rent for the month of September.
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