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On 1 March 2020, Carmody Ltd borrows $9,600 from Uncommonwealth Bank by signing a 2 month, 5%, interest-bearing note. Interest is required to be paid
On 1 March 2020, Carmody Ltd borrows $9,600 from Uncommonwealth Bank by signing a 2 month, 5%, interest-bearing note. Interest is required to be paid only on the maturity date. Note that financial year for Carmody Ltd ends on March 31. Required: (A) Prepare the journal entry on 1 March 2020 when the note was issued. (B) Prepare (if any) the adjusting entries on 31 March 2020. (C) Prepare the journal entry when the note got matured on 30 April 2020. Note: i. ii. 111. iv. If you believe no journal entry is required, explain the reason(s). Ignore the effect of GST. Narrations are not required for journal entries. Carmody Ltd's chart of accounts includes these accounts - Cash, Equipment, Accounts payable, Interest payable, Salaries payable, Notes payable, Sales Revenue, Interest expense, Depreciation expense, and Salaries expense
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