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E11.2 (LO 1) On June 1, Merando Company borrows $90,000 from First Bank on a 6-month, $90,000, 8% note. Instructions a. Prepare the entry on
E11.2 (LO 1) On June 1, Merando Company borrows $90,000 from First Bank on a 6-month, $90,000, 8% note. Instructions a. Prepare the entry on June 1. b. Prepare the adjusting entry on June 30. c. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. d. What was the total financing cost (interest expense)?
E11.2 (LO 1) On June 1, Merando Company borrows $90,000 from First Bank on a 6-month, $90,000, 8% note.
Instructions
a. Prepare the entry on June 1.
b. Prepare the adjusting entry on June 30.
c. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.
d. What was the total financing cost (interest expense)?
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
978-1305108042
