Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 10 - Reporting and Analyzing Liabilities - Brief Exercises: BE10-2

Answer

a) 1 Jul - Cash - 90,000 dollars (Debit) Note payaple - 90,000 dollars (Credit) b) 31 Dec. - Interest expense - 3,600 dollars (Debit) Interest payable - 3,600 dollars (Credit)

Work Step by Step

a) To record the issuance of Note payable Of 12% on year to Bank b) To accrue interest for six months on Bank Notes payable
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