C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2015, to advance Jeff$50,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2016.CSM prepares financial statements on June 30 and December 31.Required:1. Prepare the journal entry that CSM will make when the note is established.2. Prepare the journal entries that CSM will make to accrue interest on June 30 and December 31.3. Prepare the journal entry that CSM will make to record the interest and principal payments onFebruary 28, 2016.
C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2015, to advance Jeff$50,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2016.CSM prepares financial statements on June 30 and December 31.Required:1. Prepare the journal entry that CSM will make when the note is established.2. Prepare the journal entries that CSM will make to accrue interest on June 30 and December 31.3. Prepare the journal entry that CSM will make to record the interest and principal payments onFebruary 28, 2016.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2015, to advance Jeff
$50,000 on a one-year, 8 percent note, with interest to be paid at maturity on February 28, 2016.
CSM prepares financial statements on June 30 and December 31.
Required:
1. Prepare the
2. Prepare the journal entries that CSM will make to accrue interest on June 30 and December 31.
3. Prepare the journal entry that CSM will make to record the interest and principal payments on
February 28, 2016.
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