Question
On October 1, 2019, Smithe Company acquired some inventory with a value of $160,000. The supplier accepted an interest-bearing note payable maturing in one year.
On October 1, 2019, Smithe Company acquired some inventory with a value of $160,000. The supplier accepted an interest-bearing note payable maturing in one year. The interest rate on the note was 8% per year. Smithe repaid the note on its maturity date of September 30, 2020.
Required: Prepare Smithe Companys journal entries in respect of this note for 2019 and 2020.
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Fundamental Accounting Principles Volume 2
Authors: John Wild, Ken Shaw, Barbara Chiappetta
21st Edition
0077716663, 978-0077716660
