b. On March 1, Solana Berhad borrows RM135,000 from Affin Bank by signing a 6-month, 8%, interest-bearing note. Required: i. Prepare the entry on March 1 when the note was issued. ii. Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made. iii. Prepare the adjusting entry at August 31 to accrue interest. iv. Prepare the entry to record payment of the note at maturity. 101

b. On March 1, Solana Berhad borrows RM135,000 from Affin Bank by signing a 6-month, 8%, interest-bearing note. Required: i. Prepare the entry on March 1 when the note was issued. ii. Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made. iii. Prepare the adjusting entry at August 31 to accrue interest. iv. Prepare the entry to record payment of the note at maturity. 101

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3E: Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from...

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