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On March 1, Marigold Company borrows $100,000 from New National Bank by signing a 6-month, 6%, interest-bearing note. Prepare the necessary entries below associated with
On March 1, Marigold Company borrows $100,000 from New National Bank by signing a 6-month, 6%, interest-bearing note. Prepare the necessary entries below associated with the note payable on the books of Marigold Company. Prepare the entry on March 1 when the note was issued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit March 1 Cash Notes Payable Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30 Interest Expense Interest Payable Prepare the entry to record payment of the note at maturity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Sept. 1 Notes Payable Interest Payable Interest Expense Cash
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