Question
On May 2, Pharoah Company lends $8,000 to Chang, Inc., issuing a 6-month, 8% note. At the November 2, maturity date, Chang indicates that it
On May 2, Pharoah Company lends $8,000 to Chang, Inc., issuing a 6-month, 8% note. At the November 2, maturity date, Chang indicates that it cannot pay. Parts b and c are independent assumptions.
(a)
Prepare the entry to record the issuance of the note.
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| May 2 | |||
(b)
Prepare the entry to record the dishonor of the note, assuming that Pharoah Company expects collection will occur.
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Nov. 2 | |||
(c)
Prepare the entry to record the dishonor of the note, instead of assuming that Pharoah Company does not expect collection in the future.
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Nov. 2 | |||
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Development Of Integrated Reporting In The SME SectorCase Studies From European Countries
Authors: Joanna Dyczkowska, Andrea Szirmai Madarasine, Adriana Tiron-Tudor
1st Edition
3030819027, 9783030819026
