LO 8-3 $8.01 E8-10 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest The following transactions took place for Smart Solutions Inc. jum og 11500 104 lo avab 10 hadi sio (2) pau of out milzo 21 202001 a. July 1 b. Dec. 31 2021 c. July 1 d. July 1 BE(0) Loaned $70,000 to employees of the company and received back one-year, 10 percent notes. Accrued interest on the notes. wollReceived interest on the notes. (No interest has been recorded since December 31.) 210020A STE Received principal on the notes. sanoqx idsabe8 to Jouons tedW Required: eqx is bs& lo nuoms isdw Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. 9851097 8-83
LO 8-3 $8.01 E8-10 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest The following transactions took place for Smart Solutions Inc. jum og 11500 104 lo avab 10 hadi sio (2) pau of out milzo 21 202001 a. July 1 b. Dec. 31 2021 c. July 1 d. July 1 BE(0) Loaned $70,000 to employees of the company and received back one-year, 10 percent notes. Accrued interest on the notes. wollReceived interest on the notes. (No interest has been recorded since December 31.) 210020A STE Received principal on the notes. sanoqx idsabe8 to Jouons tedW Required: eqx is bs& lo nuoms isdw Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. 9851097 8-83
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Transcribed Image Text:LO 8-3
E8-10 Recording Notes Receivable Transactions, Including Accrual Adjustment for Interest
domic
The following transactions took place for Smart Solutions Inc.
2020
a. July 1
b. Dec. 31
2021
c. July 1
250 06
Loaned $70,000 to employees of the company and received back
one-year, 10 percent notes.
shunt at las
Accrued interest on the notes.
d. July 1
berupa
wollReceived interest on the notes. (No interest has been recorded since
December 31.)
ele
St Received principal on the notes.
noxidoa bed to Jouons tedW
oli ni songly
Bubanu adi 11
sqx mis bs& lo tuoms isrw
Required:
Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.
Expert Solution
Step 1
A note receivable is a type of asset that shows the business is to receive the value in some future time period. This is an asset for a company that shows the written promise to pay the amount to the business.
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