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On June 1, Bramble Company borrows $85,500 from First Bank on a 6-month, $85,500, 8% note. 1.Prepare the entry on June 1. 2.Prepare the adjusting entry on June 30. 3. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. 4.What was the total financing cost (interest expense)?

On June 1, Bramble Company borrows $85,500 from First Bank on a 6-month, $85,500, 8% note. 1.Prepare the entry on June 1. 2.Prepare the adjusting entry on June 30. 3. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. 4.What was the total financing cost (interest expense)?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.16E
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On June 1, Bramble Company borrows $85,500 from First Bank on a 6-month, $85,500, 8% note.

1.Prepare the entry on June 1.

2.Prepare the adjusting entry on June 30.

3. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.

4.What was the total financing cost (interest expense)?

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