Question
Caterpillar Inc. borrowed $700,000 from a bank on August 1, 2023. The loan is for 4 years at an annual interest rate of 5%, with
Caterpillar Inc. borrowed $700,000 from a bank on August 1, 2023. The loan is for 4 years at an annual interest rate of 5%, with interest payable annually. Prepare the journal entries for the loan on August 1, 2023, and the first interest payment on July 31, 2024. Additionally, show the presentation of this loan on the balance sheet as of December 31, 2023.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
