On January 1, Marshall Co. issued a $360,000, 3-year, 6% installment note payable with payments of $120,000 principal and interest due on January 1 for each of the next 3 years.
1. Prepare the adjusting journal entry to accrue interest at December 31, Year 2.
2. Show the accounts) and amounts) and where they will appear on a classified balance sheet prepared on
December 31, Year 2.

Question

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The Answer of On January 1, Marshall Co. issued a $360,000, 3-year, 6% installment note payable with payments of $120,000 principal and interest due on January 1 for each of the next 3 years.
1. Prepare the adjusting journal entry to accrue interest at December 31, Year 2.
2. Show the accounts) and amounts) and where they will appear on a classified balance sheet prepared on
December 31, Year 2.