Question
On February 1, 2021, a John Tellier Construction Co. signed a $216,000, three year, noninterest-bearing note with the Bank of New Hampshire. Similar borrowings from
On February 1, 2021, a John Tellier Construction Co. signed a $216,000, three year, noninterest-bearing note with the Bank of New Hampshire. Similar borrowings from Tellier would usually contain a 10% interest rate.
Required:
- Prepare the appropriate journal entry to record the issuance of the note.
- Prepare any adjusting journal entry(ies) on December 31, 2021, to record interest on the note for the 2021 financial statements assuming John Tellier Construction Co. has a December 31st fiscal year end.
Date | DR/CR | Account | Debit | Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- In your own words, describe how this note would be appear on the balance sheet on December 31, 2021.
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started