Entries for and Financial Statement Presentation of a Note} Perez Company borrowed ($ 100,000) from the National
Question:
Entries for and Financial Statement Presentation of a Note}
Perez Company borrowed \(\$ 100,000\) from the National Bank on April 1, 2018, on a three-year, \(7.8 \%\) note. Interest is paid annually on April 1.
\section*{Required:}
1. Record the borrowing transaction in Perez's journal.
2. Prepare the adjusting entries made at December 31, 2018 and 2019.
3. Prepare the necessary journal entry to recognize the first interest payment on April 1, 2019.
4. Indicate how the note and associated interest would be presented on Perez's December 31, 2019, statement of financial position.
5. Prepare the necessary journal entries to record the repayment of the note and the last year's interest payment on April 1, 2021.
Problem
Step by Step Answer:
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone