Calzone,Inc.signs a 9%,four-month,$50,000 loan with Reliable Bank on October 1,2017.Determine the effects on the accounting equation for the following items:
A. The signing of the loan on October 1,2017 , by Calzone, Inc.
B. The recording of the interest on December 31,2017 , by Calzone, Inc.

Question

Calzone,Inc.signs a 9%,four-month,$50,000 loan with Reliable Bank on October 1,2017.Determine the effects on the accounting equation for the following items:
 A. The signing of the loan on October 1,2017 , by Calzone, Inc.
B. The recording of the interest on December 31,2017 , by Calzone, Inc.

Quizplus · Accepted Answer

The Answer of Calzone,Inc.signs a 9%,four-month,$50,000 loan with Reliable Bank on October 1,2017.Determine the effects on the accounting equation for the following items:
 A. The signing of the loan on October 1,2017 , by Calzone, Inc.
B. The recording of the interest on December 31,2017 , by Calzone, Inc.