Answer:
1.
Date Account title Debit Credit
April 1, 2021 Note receivable $600,000
Cash $600,000
2.
Date Account title Debit Credit
Dec 31, 2021 Interest receivable $49,500
Interest revenue $49,500
<u>Working:</u>
From the date of the loan to December is 9 months so interest must be calculated for these 9 months so that the interest for 2021 is known:
= 600,000 * 11% * 9/12 months
= $49,500
3.
Date Account title Debit Credit
April 1, 2022 Cash $666,000
Interest receivable $49,500
Interest revenue $16,500
Notes receivable $600,000
<u>Working</u>
Interest revenue:
Calculated on the remaining 3 months of the loan:
= 600,000 * 11% * 3/12 months
= $16,500
