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Please help with the incorrect answers :) CC10-1 (Algo) Accounting for Debt Financing (LO 10-2] Nicole thinks that her business, Nicole's Getaway Spa (NGS), is
Please help with the incorrect answers :)
CC10-1 (Algo) Accounting for Debt Financing (LO 10-2] Nicole thinks that her business, Nicole's Getaway Spa (NGS), is doing really well and she is planning a large expansion. With buch a large expansion, Nicole will need to finance some of it using debt. She signed a one-year note payable with the bank for $47,000 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. 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 not complete. Credit No Debit 47.000 Date General Journal October 01, 2020 Cash Notes Payable (short-term) 1 47,000 705 2 December 31, 202 Interest Expense Interest Payable 705 3 705 705 September 30, 202 Interest Payable Interest Expense Cash 03 1,410 4 September 30, 202 Notes Payable (short-term) Interest Expense Cash 47,000 1.410 48,410 Step by Step Solution
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