On July 1, 2023, Ivanhoe Ltd. received a loan from its bank for $14,000 bearing...
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Accounting
On July 1, 2023, Ivanhoe Ltd. received a loan from its bank for $14,000 bearing interest at 6%. The loan is payable in two annual instalments of $7,636 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.
Record (1) the receipt of $14,000 cash from the loan on July 1, 2023; (2) the accrual of interest on December 31, 2023; (3) the first instalment payment on June 30, 2024; and (4) the accrual of interest on December 31, 2024. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
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