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On June 1, Trade Kings Company borrows K250, 000 from ATLASMARA Bank on a 6- month, K250, 000, 10% note. Instructions (a) Prepare the entry
On June 1, Trade Kings Company borrows K250, 000 from ATLASMARA Bank on a 6- month, K250, 000, 10% note.
Instructions
(a) Prepare the entry on June 1.
(b) Prepare the adjusting entry on June 30.
(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.
(d) What was the total financing cost (interest expense)?
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Solution The Journal Entries for the given question will be as follows a Date Account Dr Cr Cash 250...
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
