On 1 March, Marcel Ltd borrows $90,000 from the Eastward Bank by signing a 6-month, 9%, interest-bearing note.
Instructions: Prepare the necessary entries below associated with the note payable on the books of Marcel Ltd.
(a) Prepare the entry on 1 March when the note was issued.
(b) Prepare any adjusting entries necessary on 30 June in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the entry to record payment of the note at maturity.

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The Answer of On 1 March, Marcel Ltd borrows $90,000 from the Eastward Bank by signing a 6-month, 9%, interest-bearing note.
Instructions: Prepare the necessary entries below associated with the note payable on the books of Marcel Ltd.
(a) Prepare the entry on 1 March when the note was issued.
(b) Prepare any adjusting entries necessary on 30 June in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the entry to record payment of the note at maturity.

On 1 March, Marcel Ltd Borrows $90,000 from the Eastward