1. Record the receipt of a note on February 28, 2018 for a $70,000 loan to an employee. 2. Record the interest accrued on the note as of June 30, 2018. 3. Record the interest accrued on the note as of December 31, 2018. 4. Record the receipt of the payment for interest for the period ending February 28, 2019. 5. Record the receipt of the payment for the principalon the note's maturity date.
1. Record the receipt of a note on February 28, 2018 for a $70,000 loan to an employee. 2. Record the interest accrued on the note as of June 30, 2018. 3. Record the interest accrued on the note as of December 31, 2018. 4. Record the receipt of the payment for interest for the period ending February 28, 2019. 5. Record the receipt of the payment for the principalon the note's maturity date.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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1. Record the receipt of a note on February 28, 2018 for a $70,000 loan to an employee.
2. Record the interest accrued on the note as of June 30, 2018.
3. Record the interest accrued on the note as of December 31, 2018.
4. Record the receipt of the payment for interest for the period ending February 28, 2019.
5. Record the receipt of the payment for the principalon the note's maturity date.
Transcribed Image Text:C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis
office. As part of the arrangement, CSM agreed on February 28, 2018, to advance Jeff $70,000 on a one-
year, 7 percent note, with interest to be paid at maturity on February 28, 2019. CSM prepares financial
statements on June 30 and December 31.
Prepare the journal entry CSM will make when the note is established, accrue interest on June 30 and
December 31, and the interest and principal payments on February 28, 2019. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field. Do not round
intermediate calculations. Round your final answers to whole dollar amount.)
View transaction list
Journal entry worksheet
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Record the receipt of a note on February 28, 2018 for a $70,000 loan to an
employee.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Feb 28, 2018
Record entry
Clear entry
View general journal
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