On September 1, 2012, Kelly Company Lent $2,400 to Tim

question 41

Short Answer

On September 1, 2012, Kelly Company lent $2,400 to Tim on a 6-month 8% promissory note. The journal entry to record the note for Kelly would be __________.

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Definitions:

Covenants

Conditions imposed in agreements, especially in loan contracts, that set forth certain actions to be performed or avoided by the borrower.

Short-term Credit Agreements

Agreements between a borrower and a lender for loans that are typically due within one year or less.

Discount Loans

Loans on which the interest and financing charges are deducted from the amount before the borrower receives it.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.