Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information pertains to Geo Ltd. In 2020 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $11,700

image text in transcribed

The following information pertains to Geo Ltd. In 2020 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $11,700 that they planned to use to purchase new office equipment, the interest rate on the note was 6% with both interest and principal repayable in 6 months (December 31st). On October 1st, the company financed the purchase of a used vehicle costing $62,500 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at maturity. The company's year end is December 31st Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December 31, 2020. Assume that no interest expense was accrued during the year. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No entry for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit June 30 October 1 - December 31 (To record interest and principal repayable amount) December 31 (To record accrual of interest)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Complete Guide To Spotting Accounting Fraud And Cover-Ups

Authors: Martha Maeda

1st Edition

160138212X, 978-1601382122

More Books

Students also viewed these Accounting questions

Question

What does it mean when ????2 is 10% more than ????2?????????????

Answered: 1 week ago

Question

Know how to create a position description

Answered: 1 week ago