On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note…
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On August 31, 2014, Nina Herrera borrowed $5,000 from Second State Bank. Herrera signed a note payable, promising to pay the bank principal plus interest on August 31, 2015. The interest rate on the note is 6%. The accounting year of Second State Bank ends on June 30, 2015. Journalize Second State Bank’s (a) Lending money on the note receivable at August 31, 2014, (b) Accrual of interest at June 30, 2015, (c) Collection of principal and interest at August 31, 2015, the maturity date of the note.View Solution:
On August 31 2014 Nina Herrera borrowed 5 000 from Second
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