Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During the year, ABC Inc, borrowed one loan as follows: Loan 1: 9/1/2020$100,000 at 8% annual interest rate for 7 months from Bank of America
During the year, ABC Inc, borrowed one loan as follows: Loan 1: 9/1/2020$100,000 at 8% annual interest rate for 7 months from Bank of America (BOA). What are the Journal Entries for ABC and BOA assuming the principle and interest is due at maturity 1. Issuing the loan 2. December 31 st end of their accounting cycle 3. At the maturity of the loan, pay off. Question 1 What is ABC Inc. Journal Entry on 9/1/2020? \begin{tabular}{|ccc} \hline Note Payable & 100,000 & \\ Cash & 100,000 \\ \hline Cash & 100,000 & \\ Accounts Payable & & 100,000 \\ A/R & 100,000 & 100,000 \end{tabular} Cash 100.000 Note Payable 100.000 Question 2 What is BOA Journal Entry on 9/1/2020? Cash Note Receivable Note Receivable Cash 100,000100,000100,000100,000 Cash 100,000 Note Payable Accounts Receivable 100.000 Cash 100.000 What is the adjusting Journal Entry for ABC Inc, on 12/31/2020 ? Question 4 What is the adjusting Journal Entry for BOA on 12/31/2020? \begin{tabular}{|ccc} \hline Interest Receivable & & \\ Interest Revenue & 4,667 & \\ \hline Cash & & 4,667 \\ Interest Revenue & 2,667 & 2,667 \\ \hline Interest Expense & & \\ Interest Payable & 2,667 & 2.667 \\ \hline \end{tabular} Interest Receivable 2,667 Interest Revenue 2.667 What is the Journal Entry for ABC Inc., at the maturity of the loan? None of the above. What is the Journal Entry for BOA at the maturity of the Inan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started