Maloney Company borrowed $60,000 on a two-year, 8% note dated October 1, 2011. Interest is payable annually

Question:

Maloney Company borrowed $60,000 on a two-year, 8% note dated October 1, 2011. Interest is payable annually on October 1, 2012, and October 1, 2013, the maturity date of the note. The company prepares its financial statements on a calendar-year basis. Prepare all journal entries relating to the note for 2011, 2012, and 2013.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...