On October 31, 2022, XYZ borrowed $150,000. XYZ signed a 9-month 14% note with $150,000 principal. Interest is payable at maturity. XYZ's fiscal period is
On October 31, 2022, XYZ borrowed $150,000. XYZ signed a 9-month 14% note with $150,000 principal. Interest is payable at maturity. XYZ's fiscal period is the calendar year. 1. Prepare the journal entry in the books of XYZ for the issuance of the document on 10/31/2022. 2. Prepare the necessary adjusting entry on December 31, 2022 in the XYZ books. 3. Prepare the journal entry for the payment of the document on the due date.
Step by Step Solution
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Step: 1
1 Journal Entry on 10312022 Debit Cash 150000 Credit Note...
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Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
