Dont give handwritten answer DatetransactionDebitCredit points each Journalize the following transactions on the attached journal(Make sure to list the date it was paid and show interest calculation)1. Assume on January 1 2022 a company borrows $40,000 for four years at an annualinterest rate of 5%, and rather than paying the account off on the due date, thecompany requests an extension and converts the accounts payable to a notespayable.2. They request a 9% interest rate on a 60-day note that they pay on time3. Assume on March 1 2022 a company borrows 35,000 for 3 years at an annualinterest rate of 8%.4. Assume the company borrows $15,000 at 5% of for half of a year (January 1 throughJune 30).

Journal Entry - Journal entry is the recording of business transaction in books of account, this…

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CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Question

Dont give handwritten answer

points each Journalize the following transactions on the attached journal
(Make sure to list the date it was paid and show interest calculation)
1. Assume on January 1 2022 a company borrows $40,000 for four years at an annual
interest rate of 5%, and rather than paying the account off on the due date, the
company requests an extension and converts the accounts payable to a notes
payable.
2. They request a 9% interest rate on a 60-day note that they pay on time
3. Assume on March 1 2022 a company borrows 35,000 for 3 years at an annual
interest rate of 8%.
4. Assume the company borrows $15,000 at 5% of for half of a year (January 1 through
June 30).

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