Notes Payable and Interest On July 1, 2010, Jos Flower Shop borrowed $25,000 from the bank. Jo

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Notes Payable and Interest On July 1, 2010, Jo’s Flower Shop borrowed $25,000 from the bank. Jo signed a ten month, 8% promissory note for the entire amount. Jo’s uses a calendar year-end.

Required

1. Identify and analyze the effect of the issuance of the promissory note.

2. Identify and analyze the effect of any adjustments necessary at year-end.

3. Identify and analyze the effect of the repayment of the principal and interest.

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 02:15 AM

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Notes Payable and Interest On July 1, 2010, Jos Flower Shop borrowed $25,000 from the bank. Jo

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1 The effect of the loan on July 1 2010 can be identified and analyze...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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