Groovy Swing is a retail store specializing in golf equipment and apparel. On February 1 of the current year, the company borrows $250,000 cash from the bank with a six-month, 6% note payable. The note is used to finance the acquisition of inventory for the spring selling season.

Prepare the company's necessary journal entries on February 1st and the note's maturity date.

Question

Groovy Swing is a retail store specializing in golf equipment and apparel. On February 1 of the current year, the company borrows $250,000 cash from the bank with a six-month, 6% note payable. The note is used to finance the acquisition of inventory for the spring selling season.
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Prepare the company's necessary journal entries on February 1st and the note's maturity date.

Quizplus · Accepted Answer

The Answer of Groovy Swing is a retail store specializing in golf equipment and apparel. On February 1 of the current year, the company borrows $250,000 cash from the bank with a six-month, 6% note payable. The note is used to finance the acquisition of inventory for the spring selling season.
​
Prepare the company's necessary journal entries on February 1st and the note's maturity date.

Groovy Swing Is a Retail Store Specializing in Golf Equipment