Question
On October 1, 2018, Saddleback, Inc. negotiates with its bank to borrow $18,000 cash on a one-year note. The bank charges 5% interest. Interest payments
On October 1, 2018, Saddleback, Inc. negotiates with its bank to borrow $18,000 cash on a one-year note. The bank charges 5% interest. Interest payments are to be made in two installments, on March 31 and September 30. The principal is to be repaid on September 30, 2019, the maturity date. What adjusting entry needs to be recorded of December 31, 2018?
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Accounting Principles
Authors: Jerry J. Weygandt, Valerie A. Kinnear, Donald E. Kieso, Paul D. Kimmel, Barbara A. Trenholm, Joan E. Barlow
6th Canadian Edition
1118557301, 978-1118557303
