Jenny Kanne and Cindy Travis borrowed $32,600 on a 7-month, 6% note from Golden State Bank to open their business, KT’s Coffee House. The money was borrowed on June 1, 2014, and the note matures January 1, 2015.

Jenny Kanne and Cindy Travis borrowed $32,600 on a 7-month, 6% note from Golden State Bank to open their business, KT’s Coffee House. The money was borrowed on June 1, 2014, and the note matures January 1, 2015.

Your answer is correct. 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

Your answer is correct. 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

Your answer is correct. 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 $

Your answer is correct. 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