Question
Mclovin Corp. borrowed a 6 month note payable of $100,000 on November 1, 2013. The interest rate on the note is 6%. Mclovin uses the
Mclovin Corp. borrowed a 6 month note payable of $100,000 on November 1, 2013. The interest rate on the note is 6%. Mclovin uses the calendar year as its fiscal year and does its books quarterly.
- What would be the entry when the note was made on November 1?
| Cash $100,000 Notes Payable $100,000 | ||
| Notes Payable $100,000 Cash $100,000 | ||
| Notes Receivable $100,000 Cash $100,000 | ||
| Cash $6,000 N/P $6,000 |
What would the adjusting entry be for 12/31/13? Hint: How many months since the loan been issued?
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Financial Analysis And Decision Making
Authors: David E. Vance
1st Edition
0071406654, 9780071406659
