Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $89,000 from the East...

Transcribed Image Text:

Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $89,000 from the East Salvador Bank on February 1, 2023, on a 3-year, 7.2% note. Interest is paid annually on January 31. If required, round amounts to the nearest dollar. Required: 1. Record the borrowing transaction in Griddley's journal. If an amount box does not require an entry, leave it blank. 2023 Feb. 1 38 < Record issuance of notes at par 2. Prepare the adjusting entries made at December 31, 2023 and 2024. If an amount box does not require an entry, leave it blank. 2023 Dec. 31 2024 Dec. 31 Record interest expense Record interest expense 88 3. Prepare the necessary journal entry to recognize the first interest navment on January 31, 2024. If an amount box does not require. 3. Prepare the necessary journal entry to recognize the first interest payment on January 31, 2024. If an amount box does not require an entry, leave it blank. 2024 Jan. 31 Record interest expense and interest payment 88 4. Indicate how the note and associated interest would be presented in Griddley's December 31, 2024, balance sheet. Griddley Company Balance Sheet (partial) December 31, 2024 Current liabilities: Long-term liabilities: 5. Prepare the necessary journal entries to record the repayment of the note and the last year's interest payment on January 1, 2026. If an amount box does not require an entry, leave it blank. 2026 Jan. 31 Record interest expense and interest payment 88 Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $89,000 from the East Salvador Bank on February 1, 2023, on a 3-year, 7.2% note. Interest is paid annually on January 31. If required, round amounts to the nearest dollar. Required: 1. Record the borrowing transaction in Griddley's journal. If an amount box does not require an entry, leave it blank. 2023 Feb. 1 38 < Record issuance of notes at par 2. Prepare the adjusting entries made at December 31, 2023 and 2024. If an amount box does not require an entry, leave it blank. 2023 Dec. 31 2024 Dec. 31 Record interest expense Record interest expense 88 3. Prepare the necessary journal entry to recognize the first interest navment on January 31, 2024. If an amount box does not require. 3. Prepare the necessary journal entry to recognize the first interest payment on January 31, 2024. If an amount box does not require an entry, leave it blank. 2024 Jan. 31 Record interest expense and interest payment 88 4. Indicate how the note and associated interest would be presented in Griddley's December 31, 2024, balance sheet. Griddley Company Balance Sheet (partial) December 31, 2024 Current liabilities: Long-term liabilities: 5. Prepare the necessary journal entries to record the repayment of the note and the last year's interest payment on January 1, 2026. If an amount box does not require an entry, leave it blank. 2026 Jan. 31 Record interest expense and interest payment 88