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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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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Question Posted: Jun 25, 2024 02:01 AM

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On June 1, Marchon Company Ltd. borrows ($ 60,000) from Acme Bank on a 6-month, ($ 60,000,8

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Financial Accounting Tools For Business Decision Making

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