C.S. Lewis Company had the following transactions involving notes payable. July 1, 2012 Borrows $50,000 from Fourth National Bank by signing a 9-month, 12% note. Nov. 1, 2012 Borrows $60,000 from Livingston State Bank by signing a 3-month, 10% note. Dec. 31, 2012 Prepares adjusting entries. Feb. 1, 2013 Pays principal and interest to Livingston State Bank. Apr. 1, 2013 Pays principal and interest to Fourth National Bank. Instructions Prepare journal entries for each of the transactions.
C.S. Lewis Company had the following transactions involving notes payable. July 1, 2012 Borrows $50,000 from Fourth National Bank by signing a 9-month, 12% note. Nov. 1, 2012 Borrows $60,000 from Livingston State Bank by signing a 3-month, 10% note. Dec. 31, 2012 Prepares adjusting entries. Feb. 1, 2013 Pays principal and interest to Livingston State Bank. Apr. 1, 2013 Pays principal and interest to Fourth National Bank. Instructions Prepare journal entries for each of the transactions.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 3CE
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Question
C.S. Lewis Company had the following transactions involving notes payable.
July 1, 2012 Borrows $50,000 from Fourth National Bank by signing a 9-month, 12% note.
Nov. 1, 2012 Borrows $60,000 from Livingston State Bank by signing a 3-month, 10% note.
Dec. 31, 2012 Prepares adjusting entries.
Feb. 1, 2013 Pays principal and interest to Livingston State Bank.
Apr. 1, 2013 Pays principal and interest to Fourth National Bank.
Instructions
Prepare
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