Question
On June 1, Fancher Company Ltd. borrows $123,000 from First Bank on a 6-month, $123,000, 8% note. The note matures on December 1. 1. Prepare
On June 1, Fancher Company Ltd. borrows $123,000 from First Bank on a 6-month, $123,000, 8% note. The note matures on December 1.
1. Prepare the entry on June 1.
2. Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
3. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indnt manually.)
4. What was the total financing cost (interest expense)?
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