On August 31, 20X6, Nancy Thompson borrowed $2,200 from Yellow Interstate Bank. Thomp-
son signed a note
payable, promising to pay the bank principal plus interest on August 31,
20X7. The interest rate on the note is 9%. The accounting year of Yellow Interstate Bank ends
on June 30, 20X7. Journalize Yellow Interstate Bank's (a) lending money on the note receivable
at August 31, 20X6, (b) accrual of interest at June 30, 20X7, and (c) collection of principal and
interest at August 31, 20X7, the maturity date of the note.
Journal Entries Yellow Interstate Bank's (a) lending money on the note receivable at August 31, 20X6 Dr: Notes Receivable... View the full answer