Question
Journal Entries and T-Account help! Explain how you got there if possible please! On November 30, 2021, ABC borrowed $100,000 from American National Bank by
Journal Entries and T-Account help! Explain how you got there if possible please!
On November 30, 2021, ABC borrowed $100,000 from American National Bank by issuing an interest-bearing note payable. This loan is to be repaid in three months (on February 28, 2022), along with interest computed at an annual rate of 7%.The entry made on November 30 to record the borrowing was: Dr Cash 100,000. Cr Notes payable 100,000. On February 28, 2022 ABC must pay the bank the amount borrowed plus interest.Assume the beginning balance ($100,000) for Notes Payable is correct. Interest through 12/31/21 must be accrued on the $100,000 note.
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