Record the transactions for shoemaker corporation

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Question - On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $600,000 to its supplier using a 12-month, 11% note.

Required - Record the following transactions for Shoemaker Corporation.

1. The loan of $600,000 and acceptance of the note receivable on April 1, 2021.

2. The adjustment for accrued interest on December 31, 2021.

3. Cash collection of the note and interest on April 1, 2022.

Reference no: EM133117840

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