Suppose First Fidelity Bank engaged in the following transactions:
|
2013 |
|
|
Apr 1 |
Loaned out $8,000 to Bland, Co. Received a six month, 10% note. |
|
Oct 1 |
Collected the Bland note at maturity. |
|
Dec 1 |
Loaned $6,000 to Flores, Inc., on a 180 day, 12% note. |
|
Dec 31 |
Accrued interest revenue on the Flores note. |
|
2014 |
|
|
May 30 |
Collected the Flores note at maturity. |
First Fidelity’s accounting period ends on December 31.
Requirement
Explanations are not needed. Use a 360 day year to compute interest.
1. Journalize the 2013 and 2014 transactions on First Fidelity’s books.