Question
On September 1, 2013, Triton Entertainment borrowed $24 million cash to fund a new Fun Park. The loan was made by Nevada Bank under a
On September 1, 2013, Triton Entertainment borrowed $24 million cash to fund a new Fun
Park. The loan was made by Nevada Bank under a noncommitted short-term line of credit arrangement.
Triton issued a 9-month, 12% promissory note. Interest was payable at maturity. Triton's fiscal period is
the calendar year.
Required:
1. Prepare the journal entry for the issuance of the note by Triton.
2. Prepare the appropriate adjusting entry for the note by Triton on December 31 , 2013.
3. Prepare the journal entry for the payment of the note at maturity.
Show all work
| Date | General Journal | Debit | Credit |
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Research Methods In Accounting
Authors: Malcolm Smith
6th Edition
1529779774, 978-1529779776
