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On December 1, Buckbeak Company borrowed $20,000 from Pettigrew Company, giving a 60-day, 12% note. If the correct adjusting entry is made on December 31,
On December 1, Buckbeak Company borrowed $20,000 from Pettigrew Company, giving a 60-day, 12% note. If the correct adjusting entry is made on December 31, Buckbeak's entry at maturity is: Notes Payable 20,000 Cash 20,000 Notes Payable 20,000 Interest Payable 200 Interest Expense 200 Cash 20, 400 Notes Payable 20,000 Interest Payable 400 Cash 20, 400 Notes Payable 20,000 Interest Payable 400 Cash 20, 400 On December 1, 2016, CNN Company purchased $120,000 of equipment by issuing a 120-day, 10 % note payable to Bank of Oregon. Assuming the company's accounting period ends on December 31, the journal entry recorded by CNN Company on the note maturity date will include: Debit to Interest Expense for $3,000 Debit to Interest Payable for $3,000 Debit to Interest Payable for $2,000 Debit to Interest Expense for $1,000 Amanda Company issued 6%, 5 year bonds, with par value of $2, 400,000, paying semiannual interest for $2, 205, 339. The annual market rate of interest on the date of issue was 8%. Assuming effective interest method of amortization, calculate the bond interest expense on the first interest payment date. $ 88, 214 $178, 447 $194, 661 $ 66, 160
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