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Exercise 4 . 8 ( Algo ) Notes Payable and Interest ( LO 4 - 1 , LO 4 - 2 , LO 4 -
Exercise Algo Notes Payable and Interest LO LO LO Jesse Company adjusts its accounts monthly and closes its accounts on December On October year Jesse Company signed a note payable and borrowed $ from a banffor a period of six months at an annual interest rate of percent. Required: a How much is the total interest expense over the life of the note? How much is the monthly interest expense? Assume equal amounts of interest expense each month. b In the company's annual balance sheet at December year what is the amount of the liability to the bank? c & d Prepare the journal entry to record issuance of the note payable on October year and the adjusting entry to accrue interest on the note at December year e Assume the company prepared a balance sheet at March year State the amount of the liability to the bank at this date.
Exercise Algo Notes Payable and Interest LO LO LO
Jesse Company adjusts its accounts monthly and closes its accounts on December On October year Jesse Company signed a note payable and borrowed $ from a banffor a period of six months at an annual interest rate of percent.
Required:
a How much is the total interest expense over the life of the note? How much is the monthly interest expense? Assume equal amounts of interest expense each month.
b In the company's annual balance sheet at December year what is the amount of the liability to the bank?
c & d Prepare the journal entry to record issuance of the note payable on October year and the adjusting entry to accrue interest on the note at December year
e Assume the company prepared a balance sheet at March year State the amount of the liability to the bank at this date.
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