Received an 18%, 120,000 note on May 31,

2018. Interest will be paid together with the

principal on maturity date. The adjustment
on Dec. 31, 2018.
Principal Amount – 120,000
Interest Rate – 18%
Interest Amount - ????
PxR=I
Interest = 21,600
Dec. 31 – Interest Receivable – 21,600
Interest Income - 21,600
A one year, 10% note receivable in the
amount of 100,000 was received on January
1, 2018. The interest and the principal are
payable on maturity date. Give the Adjusting
Journal Entry on June 30, 2018.

Principal – 100,000
Rate - 10%
Interest = 10,000
Amount on June 30 – 5,000
June 30, - Interest Receivable – 5,000
Interest Income – 5,000
Received 200,000 from Metro Bank issuing a
one year note with 12% annual interest on
April 30, 2018. Give the adjusting entry at the
end of the accounting period.
Principal – 200,000
Rate – 12%
Interest – 24,000
Interest/Month – 2,000
Gap from April 30 – Dec. 31 – (8 months
multiplied by 2,000) = 16,000
Dec. 31 Interest Receivable – 16,000
Interest Income – 16,000