kelly jones and tami crawford borrowed $15,000 on a 7-month, 8% note f kelly jones and tami crawford borrowed $25,500 on a 7-month, 4% note from gem state bank to open their business, sunland’s coffee house. the money was borrowed on june 1, 2022, and the note matures january 1, 2023. kelly jones and tami crawford borrowed

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E10-1. > Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% note from Gem State Bank to open their business, JC's Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018. (a) Prepare the entry to record the receipt of the funds from the loan. June 1,2017 Cash $15,000 Notes Payable $15,000 Total annual interest = 15000 x8% = 1,200 (b) Prepare the entry to accrue the interest on June 30. (15,000 * (7/12) * 8% = $700 – interest for 7 months) Interest for 1 month is $700/7 June 30, 2017 Interest Expense $100 Interest Payable $100 (c) Assuming adjusting entries are made at the end of each