Question
could someone please help me answer these questions. Thanks Watunga County Bank agrees to lend Hoffman Granite Company $600,000 on January 1. Hoffman Granite Company
could someone please help me answer these questions. Thanks
Watunga County Bank agrees to lend Hoffman Granite Company $600,000 on January 1. Hoffman Granite Company signs a $600,000, 8%, 9-month note:
18. The entry made by Hoffman Granite on January 1 to record the proceeds and issuance of the note is
a. Interest Expense.................................................................... 36,000
Cash....................................................................................... 564,000
Notes Payable.............................................................. 600,000
b. Cash....................................................................................... 600,000
Notes Payable.............................................................. 600,000
c. Cash....................................................................................... 600,000
Interest Expense.................................................................... 36,000
Notes Payable.............................................................. 636,000
d. Cash....................................................................................... 600,000
Interest Expense.................................................................... 36,000
Notes Payable.............................................................. 600,000
Interest Payable............................................................ 36,000
19. What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30?
a. Interest Expense.................................................................... 24,000
Interest Payable............................................................ 24,000
b. Interest Expense.................................................................... 24,000
Cash.............................................................................. 24,000
c. Interest Payable..................................................................... 24,000
Cash.............................................................................. 24,000
d. Interest Payable..................................................................... 24,000
Interest Expense........................................................... 24,000
20. What entry will Hoffman Granite make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
a. Notes Payable....................................................................... 636,000
Cash.............................................................................. 636,000
b. Notes Payable....................................................................... 600,000
Interest Payable..................................................................... 36,000
Cash.............................................................................. 636,000
c. Interest Expense.................................................................... 36,000
Notes Payable....................................................................... 600,000
Cash.............................................................................. 636,000
d. Interest Payable..................................................................... 24,000
Notes Payable....................................................................... 600,000
Interest Expense.................................................................... 12,000
Cash.............................................................................. 636,000
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