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 - Questions - Page 541: 2

Answer

The note payable has been signed on July 1 for a period of 6 months. This is payable on December 31. As on 30th September, when the year ends

Work Step by Step

The note payable is due for payment after 3 months - so it is a current liability. · Interest is accrued for the period from July 01 to September 30 (3 months), amounting to 450 dollars. This Interest payable should also be shown as current liability.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions