Question
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Kelly Jones and Tami Crawford borrowed \$30,000 on a 7-month, 9% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.

Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
June 1
enter an account title to record the receipt of the funds from the loan on June 1
enter a debit amount
enter a credit amount

enter an account title to record the receipt of the funds from the loan on June 1
enter a debit amount
enter a credit amount

#### List of Accounts

Prepare the entry to accrue the interest on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
June 30
enter an account title to accrue the interest on June 30
enter a debit amount
enter a credit amount

enter an account title to accrue the interest on June 30
enter a debit amount
enter a credit amount

#### List of Accounts

Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2022.

 Balance in interest payable account \$enter the Balance in interest payable account in dollars

#### List of Accounts

Prepare the entry required on January 1, 2023, when the loan is paid back. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2023
enter an account title on January 1
enter a debit amount
enter a credit amount

enter an account title on January 1
enter a debit amount
enter a credit amount
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Step 1
1. Prepare journal entry to record the receipt of the funds from the loan:
Step 2

2. Prepare journal entry to record the accrued interest:

Step 3

3. Ascertain the balance in the Interest Payable a...

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