1Record the receipt of a note on January 1 for a 49000 loan

1)Record the receipt of a note on January 1 for a $49,000 loan to an employee

2)Record the interest accrued on the note as of June 30.

3)Record the receipt of the interest on the note’s maturity date. No interest has been recorded since June 30.

4)Record the receipt of the payment for the full principal.

Solution

Date General Journal Debit Credit 01-Jan Notes Receivable 49000 Cash 49000 receipt of a note 30-Jun Interest receivable 2205 Interest revenue 2205 49000*9%*6/12 interest accrued on the note as of June 30 31-Dec Cash 49000*9% 4410 Interest Receivable 2205 Interest revenue 2205 receipt of the interest on the note’s maturity date 31-Dec Cash 49000 Notes Receivable 49000 receipt of the payment for the full principal