Question
On September 1, 2022, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be paid
On September 1, 2022, Hare Today pet-supply store Co. borrowed $9,000 from Gone Tomorrow Bank, signing a 6-month, 4-percent note. Interest is to be paid at maturity. Hare Today and Gone Tomorrow both have a December 31 year-end.
1. Record the journal entry for the transaction for Gone Tomorrow, the lender, on September 1, 2022.
2. Record the appropriate adjusting entry related to the note by Gone Tomorrow on December 31, 2022.
3. Record the journal entry for the payment of the amount due from Hare Today at the notes maturity on March 1, 2023.
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Financial Accounting For Non Specialities
Authors: Peter Atrill, Eddie McLaney
2nd Edition
0139833625, 9780139833625
