Question
Sloan Company borrowed $8,000 on a line of credit on December 1, 2021. Simple interest of 12% will be charged and no payment is required
- Sloan Company borrowed $8,000 on a line of credit on December 1, 2021. Simple interest of 12% will be charged and no payment is required for 60 days. On December 31, the following adjusting entry was made:
Interest Expense 80
Interest Payable 80
No reversing entry was prepared or posted. Sloan received a minimum payment bill from the bank for $160 due on January 30, 2022, which represents only an interest charge. Sloan makes a $500 payment on January 30. Enter the January 30 journal entry below:
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Global Accounting Information Systems Ais For Developing Countries
Authors: Dr. Mawududur Rahman
1st Edition
1717133207, 978-1717133205
