Johnson Inc. has the following information available:On November 1, 20X1, Johnson lent $15,000 cash to one of its employees. The employee signed a one-year, 12%, promissory note.The note's principal plus interest is repaid to Johnson on November 1, 20X2.Interest calculations are rounded to the nearest whole month.Prepare journal entries to record the November 1, 20X1 transaction, the adjusting entry on 12/31/X1, and the November 1, 20X2 transaction.

Promissory note :— It is a written financial document that promises to repay the borrowed money. In…

Answered: Johnson Inc. has the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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Johnson Inc. has the following information available:

On November 1, 20X1, Johnson lent $15,000 cash to one of its employees. The employee signed a one-year, 12%, promissory note.
The note's principal plus interest is repaid to Johnson on November 1, 20X2.
Interest calculations are rounded to the nearest whole month.
Prepare journal entries to record the November 1, 20X1 transaction, the adjusting entry on 12/31/X1, and the November 1, 20X2 transaction.

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