Cairo Company on June 1 borrows ($ 50,000) from First Bank on a 6 -month, ($ 50,000),

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Cairo Company on June 1 borrows $\$ 50,000$ from First Bank on a 6 -month, $\$ 50,000$, $12 \%$ note.

\section*{Instructions}

(a) Prepare the entry on June 1.

(b) Prepare the adjusting entry on June 30 .

(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30 .

(d) What was the total financing cost (interest expense)?

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Financial Accounting

ISBN: 9780471169208

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jun 14, 2024 01:10 AM

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Cairo Company on June 1 borrows ($ 50,000) from First Bank on a 6 -month, ($ 50,000),

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Financial Accounting

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