Please choose from the following account names for this homework: Assets: Cash Notes Receivable Inte
Please choose from the following account names for this homework: Assets: Cash Notes Receivable Interest Receivable Liabilities: Notes Payable Interest Payable Equity: Interest Revenue Interest Expense Wages Expense Part I The Smith Company borrowed $2,000 from the Jones Company on October 1, 2018. The Smith Company gave the Jones Company a note that stated that the Smith Company would pay back the note in 4 months and would also pay interest on the note in 4 months at an annual interest rate of 12%. 1. Please make the following journal entries for the borrower: a. The journal entry when the money is borrowed on October 1, 2018 b. The adjusting entry required on December 31, 2018 c. The journal entry when the loan and interest are paid back on February 1, 2018 2. Please make the following journal entries for the lender: a. The journal entry when the money is loaned on October 1, 2018 b. The adjusting entry required on December 31, 2018 c. The journal entry when the loan proceeds and interest are received on February 1, 2018 Part II Assume that the company only makes adjusting entries once a year on December 31 3. Please make the adjusting entry required if a company owes $1,700 to its employees at the end of the year for the work they have done.
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