Question
Notes: On September 1, 2020, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be
Notes:
On September 1, 2020, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be paid at maturity. Hare Today and Gone Tomorrow both have a December 31 year-end.
1. Record the journal entry for the transaction for Hare Today on September 1, 2020.
2. Record the appropriate adjusting entry related to the note by Hare Today on December 31, 2020.
3. Record the journal entry for the payment of the amount due to Gone Tomorrow at the notes maturity on March 1, 2021.
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