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On June 1, Coble Company Ltd. borrows $66,000 from First Bank on a 6-month, $66,000, 9% note. The note matures on December 1. (List multiple
On June 1, Coble Company Ltd. borrows $66,000 from First Bank on a 6-month, $66,000, 9% note. The note matures on December 1. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) (a) Prepare the entry on June 1. Date Account/Description Debit Credit June 1 Cash ........ Notes payable ......... (b) Prepare the adjusting entry on June 30. Date Account/Description Debit Credit June 30 Interest expense ......... Interest payable ......... (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. Date Account/Description Debit Credit Dec. 1 Notes payable ........ Interest payable ........ Cash ............ (d) What was the total financing cost (interest expense)? $
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