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Interest Receivable
On June 1, 2014, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.
Required
1. Prepare the journal entry on MicroTel's books on June 1, 2014.
2. Prepare the adjusting entry on MicroTel's books on June 30, 2014.
3. Prepare the entry on MicroTel's books on July 31, 2014, when MaxiDriver repays the princi- pal and interest.
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