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Notes payable On February 1 2019 the company purchased equipment $8,500 and signed a 10 month note with an interest rate of 5.5 % APR.
| Notes payable | |
| On February 1 2019 the company purchased equipment $8,500 | |
| and signed a 10 month note with an interest rate of 5.5 % APR. | |
| Loan agreement is the total amount owed, due in 10 months | |
| Prepare the following | |
| Journal entry for Feb 1 | |
| Journal entry for Feb 28 to record the first monthly interest owed | |
| Journal entry at maturity when loan is paid to the bank | |
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Audit Committee Essentials
Authors: Curtis C. Verschoor
1st Edition
0471699594, 978-0471699590
