Sunland Company borrows $47,600 on July 1 from the bank by signing a $47,600, 13%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.

Sunland Company borrows $47,600 on July 1 from the bank by signing a $47,600, 13%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.

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 14GI

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(a)		Prepare the journal entry to record the proceeds of the note.
(b)		Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.