On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's signed a ten-month, 8%

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On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's 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 needed at year-end.

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

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1337491471

10th edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jun 20, 2017 08:43 AM

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On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's signed a ten-month, 8%

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1 The effect of the loan on July 1 2017 can be identified and analyzed as follo...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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