he following transactions took place for Smart Solutions Inc.   2017  a. July 1 Loaned $75,000 to an employee of the company and received back a one-year, 8 percent note.b. Dec. 31 Accrued interest on the note.  2018  c. July 1 Received interest on the note. (No interest has been recorded since December 31.)d. July 1 Received principal on the note. Required:Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Question
Asked Mar 31, 2019
289 views

he following transactions took place for Smart Solutions Inc.

 

    2017    
a.   July   1   Loaned $75,000 to an employee of the company and received back a one-year, 8 percent note.
b.   Dec.   31   Accrued interest on the note.
    2018    
c.   July   1   Received interest on the note. (No interest has been recorded since December 31.)
d.   July   1   Received principal on the note.

 

Required:

Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

 

 

 

 

check_circle

Expert Answer

Step 1

Prepare journal entries in the books of Smart Solutions Inc.

a. Record the money loaned to an employee, at 8% note.

fullscreen
Step 2

b.  Record the amount of interest accrued on note on December 31, 2017.

fullscreen
Step 3

c. Record the collection of intere...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: The purpose of the depreciation adjustment is to:   -spread the cost invested in an asset over its...

A: Depreciation: It refers to the diminution in the financial value of an asset over its useful life du...

question_answer

Q: Identify the following expenditures as capital expenditures or revenue expenditures. Immediately af...

A: Expenditures: The useful life of the plant assets signifies the time period, that the company estima...

question_answer

Q: How is the earned income credit determined?

A: Earned income credit: Earned income credit is a refundable tax credit system designed by the federal...

question_answer

Q: Need Complete Explanation

A: Calcuation of share of loss by Partner Z. 

question_answer

Q: Brief Exercise 14-9On January 1, 2017, Flounder Corporation redeemed $410,000 of bonds at 97. At the...

A: Calculate the amount of cash paid to redeem the bond.

question_answer

Q: Explain what is meant by the term management by exception. What is the relationship between the proc...

A: Management by exception: Under this style of management, employees are allowed to take decisions rel...

question_answer

Q: High Country, Inc., produces and sells many recreational products. The company has just opened a new...

A: 1 (a) Compute the unit product cost using absorption costing: 

question_answer

Q: The following expenditures relating to plant assets were made by Glenn Company during the first 2 mo...

A: Expenditures: The useful life of the plant assets signifies the time period, that the company estima...

question_answer

Q: Larkspur, Inc.currently has 720,000 shares of common stock outstanding. Larkspur, Inc. is considerin...

A: By issuing stock, the company will have no interest expenses from bond. The number of outstanding sh...