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On January 1, 2019 Elway Inc. gave a 2-year loan to Sutton Corp. in return...

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Accounting

On January 1, 2019 Elway Inc. gave a 2-year loan to Sutton Corp. in return for a 2-year note receivable with a face value of 20,000 and a 10% stated interest rate. Interest payments are received semi-annually (6/30 and 12/31) and the note matures on December 31, 2020. The market rate for similar loans is 6%.

Date

Cash Received

Interest Revenue

Disc/Prem Amortized

Carrying Amount

1-Jan

Please prepare the necessary journal entries for Elway Inc. in 2019 and 2020.

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