Question
On October 1, Dutta Incorporated borrowed $66 million and issued a nine-month promissory note. Interest was discounted at issuance at a 8% discount rate. Prepare
On October 1, Dutta Incorporated borrowed $66 million and issued a nine-month promissory note. Interest was discounted at issuance at a 8% discount rate.
Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.
Answer is not complete.
| No | Event | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | 1 | Cashselected answer correct | 66,000,000selected answer incorrect | not attempted |
| Notes payableselected answer incorrect | not attempted | 66,000,000selected answer incorrect | ||
| 2 | 2 | Interest expenseselected answer correct | 1,320,000selected answer correct | not attempted |
| Interest payableselected answer incorrect | not attempted | 1,320,000selected answer correct |
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Proli Footwear Inc An Audit And Fraud Simulation For Team Based Student Learning
Authors: Prof Richard J. Proctor CPA, Prof Patricia M. Poli Phd
2nd Edition
0615455492, 978-0615455495
