On June 1, Marchon Company Ltd. borrows ($ 60,000) from Acme Bank on a 6-month, ($ 60,000,8
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On June 1, Marchon Company Ltd. borrows \(\$ 60,000\) from Acme Bank on a 6-month, \(\$ 60,000,8 \%\) note. The note matures on December 1 .
\section*{Instructions}
(a) Prepare the entry on June 1.
(b) Prepare the adjusting entry on June 30 .
(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30 .
(d) What was the total financing cost (interest expense)?
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Related Book For 
Financial Accounting Tools For Business Decision Making
ISBN: 9781119316022
8th Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
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