On 1 March 2014, Bayonne Services made a loan to one of its officers. The officer signed a 6- month bill for $4 000 at 8%. Bayonne generally accrues interest at year- end only, so at the time the bill matured, Bayonne had not accrued any interest revenue. On 1 September, when the bill matured, the officer settled in full with the company. Please provide the journal entry made by Bayonne when the bill was settled.

Question

Quizplus · Accepted Answer

The Answer of On 1 March 2014, Bayonne Services made a loan to one of its officers. The officer signed a 6- month bill for $4 000 at 8%. Bayonne generally accrues interest at year- end only, so at the time the bill matured, Bayonne had not accrued any interest revenue. On 1 September, when the bill matured, the officer settled in full with the company. Please provide the journal entry made by Bayonne when the bill was settled.

On 1 March 2014, Bayonne Services Made a Loan to One