7-7 On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are the terms and other information pertaining to the loan: Amount of the loan...

7-7

On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are

the terms and other information pertaining to the loan:

Amount of the loan ............................................................ $100,000

How long the loan is for (the term of the loan) ................... 1 year

Date the loan was made .................................................... April 1, 2021

Date of first interest payment to the bank ........................... June 30, 2021

Amount of interest charged by the bank for April ............... $550

Amount of interest charged by the bank for May ................ $568

Amount of interest charged by the bank for June ............... $550

The following is a partial list of the accounts in Baker’s General Ledger. These are the only

accounts you need for this problem.

 Cash

 Note Payable

 Interest Payable

 Interest Expense

Requirement 1


Prepare the April 1, 2021 General Journal entry to record getting the loan from the bank.


Requirement 2

Prepare the April 30, 2021 General Journal adjusting entry to accrue the interest owed to the

bank for the month of April.


Requirement 3

Prepare the May 31, 2021 General Journal adjusting entry to accrue the interest owed to the

bank for the month of May.


Requirement 4

Prepare the June 30, 2021 General Journal entry to record the payment of the April, May, and

June interest to the bank.