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On December 1,2010 Gates Company Borrowed $45,000 Cash from FirstBank

Question 151

Essay

On December 1,2010 Gates Company borrowed $45,000 cash from FirstBank on a 90-day,9% note payable.
a. Prepare Gate's general journal entry to record the issuance of the note payable
b. Prepare Gate's general journal entry to record the accrued interest due at December 31, 2010
c. Prepare Gate's general journal entry to record the payment of the note on March 1, 2013.

Correct Answer:

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a.
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