Question
On January 2, each company borrowed $400,000 on a 20-year, 7 percent note payable. Interest plus $20,000 principal is due September 30 each year. On
On January 2, each company borrowed $400,000 on a 20-year, 7 percent note payable. Interest plus $20,000 principal is due September 30 each year.
On September 30, the first $20,000 principal payment plus nine months' interest was made on the note payable described in the above transaction
Management made an adjusting entry to accrue three months' interest on the note payable in the transactions. What would be the adjusting entry?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
