Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021. Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5

Question

Recording Accrued Interest Expense

Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note.

a. Record this financing transaction on November 1, 2020.

b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months.

c. Record the entry to repay the note on November 1, 2021.

Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5

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Accounting For Decision Making

Bond/Notes Valuation

Final Accounts for Companies

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