On 1 September 2014, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity.

-Assume Select made no adjusting entry with respect to this note before preparing the financial statements at 31 December 2014. What is the effect of this error on the financial statements for 2014?

Question

On 1 September 2014, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity.

-Assume Select made no adjusting entry with respect to this note before preparing the financial statements at 31 December 2014. What is the effect of this error on the financial statements for 2014?

Quizplus · Accepted Answer

The Answer of  On 1 September 2014, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on the note due at maturity.

-Assume Select made no adjusting entry with respect to this note before preparing the financial statements at 31 December 2014. What is the effect of this error on the financial statements for 2014?

On 1 September 2014, Select Company Borrowed $600,000 from a Bank