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Page 1 of 11 Glencoe Inc, operates with a June 30 year-end. During 2017, the following transactions occurred a. January 1: Signed a one-year, 10% loan for $25,000. Interest and principal are to be paid at maturity. b. January 10: Signed a line of credit with Little Local Bank to establish a $400,000 line of credit. Interest of 9% will be charged on all borrowed funds. on the note, at 12%, was d d. March 1: Borrowed $150,000 on the line of credit e. June 1: Repaid $100,000 on the line of credit plus accrued interest f. June 30: Made all necessary adjusting entries. g. August 1: Repaid h. September 1: Borrowed $200,000 on the line of credit. l. November 1: Issued a three-month, 8%, $12,000 note in payment of an overdue open account. . December 31: Repaid the one-year loan [from transaction (a)] plus accrued interest Required: the non-interest-bearing note. 1. Identify and analyze the effect of these transactions. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. a. January 1 : Signed a one-year, 10% loan for S25,000. Interest and principal are to be paid at maturity Financing Accounts Cash Increase, Notes Statement(s) Balance Sheet only Check My Work Identify and analyze the transaction by using the following steps: 1. Determine activity - operating, investing or financing. 2. Determine accounts affected and the amount of increases/decreases. 3. Determine the financial statements affected - balance sheet, income statement. The accounting equation must balance for each transaction 1a) The accounting for notes payable depends on whether the interest is paid on the note's due date or if deducted before the borrower receives the loan proceeds When the first type of not (an interest bearing note), both the principal and interest are paid on the due date of the note. Page 1 of 11 Glencoe Inc, operates with a June 30 year-end. During 2017, the following transactions occurred a. January 1: Signed a one-year, 10% loan for $25,000. Interest and principal are to be paid at maturity. b. January 10: Signed a line of credit with Little Local Bank to establish a $400,000 line of credit. Interest of 9% will be charged on all borrowed funds. on the note, at 12%, was d d. March 1: Borrowed $150,000 on the line of credit e. June 1: Repaid $100,000 on the line of credit plus accrued interest f. June 30: Made all necessary adjusting entries. g. August 1: Repaid h. September 1: Borrowed $200,000 on the line of credit. l. November 1: Issued a three-month, 8%, $12,000 note in payment of an overdue open account. . December 31: Repaid the one-year loan [from transaction (a)] plus accrued interest Required: the non-interest-bearing note. 1. Identify and analyze the effect of these transactions. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. a. January 1 : Signed a one-year, 10% loan for S25,000. Interest and principal are to be paid at maturity Financing Accounts Cash Increase, Notes Statement(s) Balance Sheet only Check My Work Identify and analyze the transaction by using the following steps: 1. Determine activity - operating, investing or financing. 2. Determine accounts affected and the amount of increases/decreases. 3. Determine the financial statements affected - balance sheet, income statement. The accounting equation must balance for each transaction 1a) The accounting for notes payable depends on whether the interest is paid on the note's due date or if deducted before the borrower receives the loan proceeds When the first type of not (an interest bearing note), both the principal and interest are paid on the due date of the
