Question
On September 1, 2009, Charles Associates borrowed $600,000 from Diana Credit Union and signed a 9%, one-year note payable, all due at maturity. Answer the
On September 1, 2009, Charles Associates borrowed $600,000 from Diana Credit Union and signed a 9%, one-year note payable, all due at maturity. Answer the following questions in connection with this transaction.
Requirements:
a. Determine the amount Charles must pay on September 1, 2010 when the Note matures
b. Calculate the Interest Expense Charles will recognize on this Note in 2010
c. Determine Charles Associates liability to the credit union as of 12/31/09
d. Prepare the adjusting journal entry (in proper form) made by Charles Associates on December 31, 2009 with respect to this Note. Assume that the proper accounting entry was made on September 1, 2009 when the Note was issued.
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Internal Auditing Assurance And Consulting Services
Authors: Kurt F. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Contributing Writer, Cris Ridd, Richard Tuschman
1st Edition
0894136100, 978-0894136108
