Question
Company A and Company B each borrow $1,500 from the bank. Company A signed a 30-day, 12% note. Company B signed a 60-day, 10% note.
| Company A and Company B each borrow $1,500 from the bank. Company A signed a 30-day, 12% note. Company B signed a 60-day, 10% note. How will each of these companies record these events in their respective general journals on the day the money was borrowed? |
Company A
| Notes payable | 1,500 | |
| Cash | 1,500 |
Company B
| Notes payable | 1,500 | |
| Cash | 1,500 |
Company A
| Cash | 1,500 | |
| Notes payable | 1,500 |
Company B
| Cash | 1,500 | |
| Notes payable | 1,500 |
Company A
| Cash | 1,515 | |
| Interest expense | 15 | |
| Notes payable | 1,500 |
Company B
| Cash | 1,525 | |
| Interest expense | 25 | |
| Notes payable | 1,500 |
Company A
| Cash | 1,515 | |
| Notes payable | 1,515 |
Company B
| Cash | 1,525 | |
| Notes payable | 1,525 |
Company A
| Interest expense | 15 | |
| Notes payable | 1,500 | |
| Cash | 1,515 |
Company B
| Interest expense | 15 | |
| Notes payable | 1,500 | |
| Cash | 1,515 |
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An Internal Audit
Authors: Mette Marx
1st Edition
0998140910, 978-0998140919
