Question: Journalizing note receivable transactions including a dishonored note On September 30, 2016, Statewide Bank loaned $90,000 to Katrina Harmon on a one-year, 6% note. State wide's fiscal year ends on December 31.
Requirements: 1. Journalize all entries for Statewide Bank related to the note for 2016 and 2017.
2. Which party has a
a. note receivable?
b. note payable?
c. interest revenue?
d. interest expense?
3. Suppose that Katrina Harmon defaulted on the note. What entry would Statewide record for the dishonored note?