To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants underformal contracts, provided that they use it to renovate their store space. On November 1, 2014, thecompany loaned $100,000 to a new tenant on a one-year note with a stated annual interest rate of9 percent. Interest is to be received by Marketplace Mall on April 30, 2015, and at maturity onOctober 31, 2015.Required:Prepare journal entries that Marketplace Mall would record related to this note on the following dates: ( a ) November 1, 2014; ( b ) December 31, 2014 (Marketplace Mall’s fiscal year-end);( c ) April 30, 2015; and ( d ) October 31, 2015.
To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants underformal contracts, provided that they use it to renovate their store space. On November 1, 2014, thecompany loaned $100,000 to a new tenant on a one-year note with a stated annual interest rate of9 percent. Interest is to be received by Marketplace Mall on April 30, 2015, and at maturity onOctober 31, 2015.Required:Prepare journal entries that Marketplace Mall would record related to this note on the following dates: ( a ) November 1, 2014; ( b ) December 31, 2014 (Marketplace Mall’s fiscal year-end);( c ) April 30, 2015; and ( d ) October 31, 2015.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under
formal contracts, provided that they use it to renovate their store space. On November 1, 2014, the
company loaned $100,000 to a new tenant on a one-year note with a stated annual interest rate of
9 percent. Interest is to be received by Marketplace Mall on April 30, 2015, and at maturity on
October 31, 2015.
Required:
Prepare
( c ) April 30, 2015; and ( d ) October 31, 2015.
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