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C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2015, to advance Jeff $40,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2016. CSM prepares financial statements on June 30 and December 31.
Prepare the journal entry that CSM will make to record the interest and principal payments on February 28, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to nearest whole dollar)
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