On March 1, 2012, Bayonne Services made a loan to one of its officers. The officer signed a 6-month note for $4,000 at 8%. Bayonne generally accrues interest at year-end only, so at the time the note matured, Bayonne had not accrued any interest revenue. On September 1, when the note matured, the officer settled in full with the company. Please provide the journal entry made by Bayonne when the note was settled.

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The Answer of On March 1, 2012, Bayonne Services made a loan to one of its officers. The officer signed a 6-month note for $4,000 at 8%. Bayonne generally accrues interest at year-end only, so at the time the note matured, Bayonne had not accrued any interest revenue. On September 1, when the note matured, the officer settled in full with the company. Please provide the journal entry made by Bayonne when the note was settled.

On March 1, 2012, Bayonne Services Made a Loan to One