Chapter 11 Inc. entered into the following transactions relating to notes payable:
a. Prepare journal entries to record the above transactions.
b. Assuming Chapter 11 Inc. has a December 31 year end, prepare any adjusting entries needed for the accrual of interest. For ease of computation assume that Chapter 11 Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.

Question

Chapter 11 Inc. entered into the following transactions relating to notes payable:
  a. Prepare journal entries to record the above transactions.
b. Assuming Chapter 11 Inc. has a December 31 year end, prepare any adjusting entries needed for the accrual of interest. For ease of computation assume that Chapter 11 Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.

Quizplus · Accepted Answer

The Answer of Chapter 11 Inc. entered into the following transactions relating to notes payable:
  a. Prepare journal entries to record the above transactions.
b. Assuming Chapter 11 Inc. has a December 31 year end, prepare any adjusting entries needed for the accrual of interest. For ease of computation assume that Chapter 11 Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.