On March 1, Jordan Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note.
Instructions
Prepare the necessary entries below associated with the note payable on the books of Jordan Company.
(a) Prepare the entry on March 1 when the note was issued.
(b) Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the adjusting entry at August 31 to accrue interest.
(d) Prepare the entry to record payment of the note at maturity.
Correct Answer:
Verified
Q151: A current liability is a debt the
Q158: Flott Company has ten employees who each
Q159: The journal entry to record the payroll
Q160: Nick Dent, an employee of Spottswood Company,
Q161: Kingery Sales Company has the following selected
Q163: Flores Company publishes a monthly sports magazine,
Q164: Wellington Company had the following transactions involving
Q165: On December 1, Gilman Corporation borrowed $5,000
Q166: Mehring's 2010 financial statements contained the following
Q167: Judy Reber's regular hourly wage rate is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents