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Exercise 10-1 Jenny Kanne and Cindy Travis borrowed $15,000 on a 7-month, 8% note from...

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Accounting

Exercise 10-1 Jenny Kanne and Cindy Travis borrowed $15,000 on a 7-month, 8% note from Golden State Bank to open their business, KTs Coffee House. The money was borrowed on June 1, 2014, and the note matures January 1, 2015. 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 SHOW LIST OF ACCOUNTS LINK TO TEXT 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 SHOW LIST OF ACCOUNTS LINK TO TEXT Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at December 31, 2014. Balance in interest payable account $ SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the entry required on January 1, 2015, 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

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