Non-Interest-Bearing Notes Payable On October 1, 2008, Ratkowski Inc. borrowed $18,000 from Second National Bank by issuing
Question:
Non-Interest-Bearing Notes Payable On October 1, 2008, Ratkowski Inc. borrowed $18,000 from Second National Bank by issuing a 12-month note. The bank discounted the note at 9%.
Required 1. Prepare the journal entry needed to record the issuance of the note.
2. Prepare the journal entry needed at December 31, 2008, to accrue interest.
3. Prepare the journal entry to record the payment of the note on October 1, 2009.
4. What effective rate of interest did Ratkowski pay?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Sarfraz gull
have strong entrepreneurial and analytical skills which ensure quality tutoring and mentoring in your international business and management disciplines. Over last 3 years, I have expertise in the areas of Financial Planning, Business Management, Accounting, Finance, Corporate Finance, International Business, Human Resource Management, Entrepreneurship, Marketing, E-commerce, Social Media Marketing, and Supply Chain Management.
Over the years, I have been working as a business tutor and mentor for more than 3 years. Apart from tutoring online I have rich experience of working in multinational. I have worked on business management to project management.
3+ Reviews
10+ Question Solved
Related Book For 
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton
Question Posted:
