Question
On September 30, ABC Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 7.25%, interest-bearing note. Instructions: Prepare the necessary entries below associated
On September 30, ABC Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 7.25%, interest-bearing note.
Instructions: Prepare the necessary entries below associated with the note payable on the books of ABC Company.
(a) Prepare the journal entry when the note was issued. (1 marks)
(b) Prepare the adjusting entry at December 31 to accrue interest. (1 marks)
(c) Prepare the entry to record payment of the note at maturity date. (2 marks)
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Auditing For Managers The Ultimate Risk Management Tool
Authors: K. H. Spencer Pickett, Jennifer M. Pickett
1st Edition
0470090987, 978-0470090985
