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On December 1, Bears Company received a $15,000, 75-day, 9% note from a customer in exchange for services pe med. Bears Company prepared the

 

On December 1, Bears Company received a $15,000, 75-day, 9% note from a customer in exchange for services pe med. Bears Company prepared the appropriate journal entry on December 1 to record the receipt of the note. (Assume a year has 360 days for interest computation purposes). 1. Prepare the year-end adjusting entry to record accrued interest on December 31. 2. Prepare the entry required on the notes maturity date assuming it is honored.

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