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Please Help I cant figure what im doing wrong for Journal Entry 3 ! 15 Nicole thinks that her business, Nicole's Getaway Spa (NGS), is
Please Help I cant figure what im doing wrong for Journal Entry 3 !
15 Nicole thinks that her business, Nicole's Getaway Spa (NGS), is doing really well and she is planning a large expansion. With such a large expansion, Nicole will need to finance some of it using debt. She signed a one-year note payable with the bank for $56,000 with a 6 percent interest rate. The note was issued October 1, 2020; interest is payable annually; and the end of Nicole's accounting period is December 31. 1 points Required: Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2021, assuming that no entries are made other than at the end of the accounting period and when the note reaches its maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 56,000 October 01, 2020 Cash Notes Payable (short-term) 56,000 2 840 December 31, 202 Interest Expense Interest Payable 840 > 3 840 X September 30, 202 Interest Expense Interest Payable Cash 840 1,680 4 56,000 > September 30, 202 Notes Payable (short-term) Cash 56,000Step by Step Solution
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