Question
XYZ Inc required cash, and signed an 8-month 3% $50,000 Note Payable with the bank on November 1, 2021. The note's principle and interest is
XYZ Inc required cash, and signed an 8-month 3% $50,000 Note Payable with the bank on November 1, 2021. The note's principle and interest is due in cash on the maturity date.
A. What is the maturity date of this note payable?
B. The adjusting entry for this note is done on December 31, 2021. Prepare the adjusting entry.
C. Prepare the journal entry on the maturity date of this note.
D. Assume now that XYZ Inc uses reversing entries. Prepare all journal entries in this case: November 1, 2021, the adjusting journal entry, the reversing journal entry and the journal entry on the maturity date.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
