heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31. Prepare Sheridan’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31. Prepare Sheridan’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Sheridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31.
Prepare Sheridan’s
No. Date Account Titles and Explanation Debit Credit
(a)
(b)
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