Hi,

On July, 1st 2014, Jo Florist borrowed $25.000 from bank. Jo signed Promissory notefor 8% rate (10 months due) for the whole sum of the loaned cash. Jo uses end year calendar.

Questions :

1. Prepare the entry for July, 1st to note the promissory note that Jo signed.
2. Prepare the adjusting entry required by the end the calendar year.
3. Prepare the entry on May 1st, to note the Jo's expected payment due date which includes the occurring interest.

Cheers,

P.