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Crane Limited borrowed $75,600 from National Limited on July 1 and issued a three-month note payable at 6% due at maturity on October 1.
Crane Limited borrowed $75,600 from National Limited on July 1 and issued a three-month note payable at 6% due at maturity on October 1. Crane's year end is August 31 and the company records adjusting entries only at that time. Date Account Titles July 1 Notes Receivable Cash Debit 75600 Credit 75600 Prepare the journal entries that National Limited would record on the note it received from Crane Limited, assuming it makes adjusting entries monthly, for the accrual of interest income on July 31, August 31, and September 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the question statement. List all debit entries before credit entries.) ite Account Titles Interest Receivable Interest Income Interest Receivable Interest Income Interest Receivable Interest Income Debit 378 378 378 Credit 378 378 378 Prepare journal entry that National Limited would record on the note it received from Crane Limited, assuming it makes adjusting entries monthly for the receipt of interest and principal on October 1 when the note receivable matures. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles Oct. 1 Notes Payable Interest Payable Cash Debit Credit 75600 1134 76734
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