In an effort to raise some cash for operating activities, Pina Colada...
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In an effort to raise some cash for operating activities, Pina Colada Corporation approached Flint Ltd. and asked to borrow $114,000 (the Presidents of Pina Colada and Flint were cousins). Flint agreed to loan $114,000 to Pina Colada for three months at 6% interest. On August 1, Pina Colada signed a promissory note for the amount, promising to repay the funds plus interest on November 1. Prepare all the journal entries on the books of Flint to record the note receivable, assuming that Flint's fiscal year-end is September 30 and repayment of the note receivable plus interest occurs on November 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the note) (To record interest through year end) (To record interest through October) (To record repayment of the note)
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