Rehman & Rehman adjusts its accounts monthly and closes its accounts on December, 31st. on October 31st 2000 company signed a notes payable and borrowed Rs. 120,000 from the bank for a period of six months an annual interest rate of 9%. Required: 1. How much is the total interest expense over the life of the note? How much is the monthly interest expense? 2. In company's annual balance sheet at December 31st 2000 what is the amount of liability to the bank? 3. Prepare journal entry to record issuance of notes payable on October 31st 2000.

Rehman & Rehman adjusts its accounts monthly and closes its accounts on December, 31st. on October 31st 2000 company signed a notes payable and borrowed Rs. 120,000 from the bank for a period of six months an annual interest rate of 9%. Required: 1. How much is the total interest expense over the life of the note? How much is the monthly interest expense? 2. In company's annual balance sheet at December 31st 2000 what is the amount of liability to the bank? 3. Prepare journal entry to record issuance of notes payable on October 31st 2000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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