The following transactions took place for Parker’s Grocery. a. Jan. 1 Loaned $50,000 to a cashier of the company and received back a one-year, 8 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. Prepare the journal entries that Parker's Grocery would record for the above transactions
The following transactions took place for Parker’s Grocery. a. Jan. 1 Loaned $50,000 to a cashier of the company and received back a one-year, 8 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. Prepare the journal entries that Parker's Grocery would record for the above transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following transactions took place for Parker’s Grocery.
| a. | Jan. | 1 | Loaned $50,000 to a cashier of the company and received back a one-year, 8 percent note. | |||
| b. | June | 30 | Accrued interest on the note. | |||
| c. | Dec. | 31 | Received interest on the note. (No interest has been recorded since June 30.) | |||
| d. | Dec. | 31 | Received principal on the note. |
Prepare the journal entries that Parker's Grocery would record for the above transactions. (If no entry is required for a transaction/event, select "No
1) Record the receipt of a note on January 1 for a $50,000 loan to an employee.
2) Record the interest accrued on the note as of June 30.
3) Record the receipt of the interest on the note's maturity date. No interest has been recorded since June 30.
4) Record the receipt of the payment for the full principal.
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