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Megan Haak and Kathy Quandt borrowed RM15,000 on a 7-month, 8% note from Golden State Bank to open their business, MK's Coffee House. The money
Megan Haak and Kathy Quandt borrowed RM15,000 on a 7-month, 8\% note from Golden State Bank to open their business, MK's Coffee House. The money was borrowed on 1st June 2012 , and the note matures 1st January 2013. Instructions: a) Prepare the entry to record the receipt of the funds from the loan. b) Prepare the entry to accrue the interest on 30th June. c) Assuming adjusting entries are made at the end of each month; determine the balance in the interest payable account at 31st December 2012. d) Prepare the entry required on 1st January 2013 when the loan is paid back
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
