Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan is payment due in four months from June 10, with and an annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings and the two payments for Mohammed.
Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan is payment due in four months from June 10, with and an annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings and the two payments for Mohammed.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 9PA: Mohammed LLC is a growing consulting firm. The following transactions take place during the current...
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PA9. Mohammed LLC is a growing consulting firm. The following transactions take place during the
current year.
A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of
the loan is payment due in four months from June 10, with and an annual interest rate of 5%.
B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9,
and an annual interest rate of 12%.
C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the
July 9 loan.
Record the
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