Hopkins Co. issued a ($ 40,000) face value discount note to National Bank on July 1, 2011.
Question:
Hopkins Co. issued a \(\$ 40,000\) face value discount note to National Bank on July 1, 2011. The note had a 12 percent discount rate and a one-year term to maturity.
Required
Prepare general journal entries for the following:
a. The issuance of the note on July \(1,2011\).
b. The adjustment for accrued interest at the end of the year, December 31, 2011.
c. Recording interest expense for 2012 and repaying the principal on June 30, 2012.
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General Journal Entries for Hopkins Cos Discount Note Here are the general journal entries for the situations you described a Issuance of the note on July 1 2011 This transaction involves receiving ca...View the full answer
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