On March 1,2012,Bayonne Services Made a Loan to One of Its

question 132

Essay

On March 1,2012,Bayonne Services made a loan to one of its officers.The officer signed a 6-month note for $4,000 at 8%.Bayonne generally accrues interest at year-end only,so at the time the note matured,Bayonne had not accrued any interest revenue.On September 1,when the note matured,the officer settled in full with the company.Please provide the journal entry made by Bayonne when the note was settled.
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Definitions:

Selectivity

The action or process of choosing or selecting something from a group according to specific criteria.

Constancy

The quality of being unchanging or steadfast over a period of time.

Social Identity

An individual's sense of who they are based on their group memberships and the value and emotional significance attached to those memberships.

Personal Identity

An individual's conception and expression of their own self and personality, including aspects of their life that make them unique.