On December 1, 2021, abc Ltd. borrowed $180,000 from a local bank by signing a four-month, 5% interest-bearing note. All payments will be made at the note's maturity date. Assuming Parfait has a December 31 year-end, the adjusting journal entry on December 31 will include a: debit to Interest payable of $750. credit to Notes Payable of $750 credit to Interest payable of $750 credit to Interest expense of $750
On December 1, 2021, abc Ltd. borrowed $180,000 from a local bank by signing a four-month, 5% interest-bearing note. All payments will be made at the note's maturity date. Assuming Parfait has a December 31 year-end, the adjusting journal entry on December 31 will include a: debit to Interest payable of $750. credit to Notes Payable of $750 credit to Interest payable of $750 credit to Interest expense of $750
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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On December 1, 2021, abc Ltd. borrowed $180,000 from a local bank by signing a four-month, 5% interest-bearing note. All payments will be made at the note's maturity date. Assuming Parfait has a December 31 year-end, the
debit to Interest payable of $750. |
|
credit to Notes Payable of $750 |
|
credit to Interest payable of $750 |
|
credit to Interest expense of $750 |
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