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Wolf Company Borrowed $5,000 on an 8% Note Payable on April

Question 83

Essay

Wolf Company borrowed $5,000 on an 8% note payable on April 1, 2014. The maturity date of the note (and payment of all interest) is July 1, 2015. The accounting period ends December 31. Assume no adjusting entries are made during the year.
Required:
Prepare the journal entry for each of the following dates:
A. April 1, 2014
B. December 31, 2014
C. July 1, 2015

Correct Answer:

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