On June 1, Vaughn Company borrows $144,000 from First Bank on a 6-month, $144,000, 8% note. (a)Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditJune 1eTextbook and MediaList of AccountsSave for Later(b)Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indentmanually.)DateAccount Titles and ExplanationDebitCreditJune 30eTextbook and MediaList of AccountsSave for Later(c)Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditDec. 1

Interest is charged on accrual basis

Answered: On June 1, Vaughn Company borrows…

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On June 1, Vaughn Company borrows $144,000 from First Bank on a 6-month, $144,000, 8% note.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 10RE: Use the information in RE3-6, (a) assuming Ringo Company makes reversing entries, prepare the...

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Question

On June 1, Vaughn Company borrows $144,000 from First Bank on a 6-month, $144,000, 8% note.

(a)
Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
June 1
eTextbook and Media
List of Accounts
Save for Later
(b)
Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
June 30
eTextbook and Media
List of Accounts
Save for Later
(c)
Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Dec. 1

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