Hi there,I'm not sure how to write this journal entry On July 1, 2021, the Canada Bank lent $37,000 to Sheffield Limited. The 18-month loan bears interest at 7%. Prepare the journalentries to record each of the following on the Canada Bank's books:(a)The issue of the bank loan on July 1, 2021. (List all debit entries before credit entries. Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter o for the amounts.)DateJuly 1,2021Account Titles and ExplanationDebitCredit

For bank, issue of loan results in reduction in cash balance and increase in receivable balance

Answered: On July 1, 2021, the Canada Bank lent…

FINANCIAL ACCOUNTING

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Hi there,

I'm not sure how to write this journal entry

On July 1, 2021, the Canada Bank lent $37,000 to Sheffield Limited. The 18-month loan bears interest at 7%. Prepare the journal
entries to record each of the following on the Canada Bank's books:
(a)
The issue of the bank loan on July 1, 2021. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts.)
Date
July 1,
2021
Account Titles and Explanation
Debit
Credit

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Using this same information, to make a journal entry for the date of January 1, 2023 for collection of the interest and the bank loan, is the following correct?

Jan 1, 2023

Interest receivable $3885 (debit)

Bank loan recievable $3700 (debit)

Cash $40885 (credit)

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