Waleed Company had the following transactions involving notes payable. Aug. 1, 2020 Borrows $200,000 from National Bank of Oman by signing a 9-month, 12% note. Dec. 1, 2020 Borrows $120,000 from Dhofar Bank by signing a 3-month, 10% note. Dec. 31, 2020 Prepares adjusting entries. March 1, 2021 Pays principal and interest to Dhofar Bank. May 1, 2021 Pays principal and interest to National Bank of Oman. Instructions Prepare journal entries for each of the transactions.
Waleed Company had the following transactions involving notes payable. Aug. 1, 2020 Borrows $200,000 from National Bank of Oman by signing a 9-month, 12% note. Dec. 1, 2020 Borrows $120,000 from Dhofar Bank by signing a 3-month, 10% note. Dec. 31, 2020 Prepares adjusting entries. March 1, 2021 Pays principal and interest to Dhofar Bank. May 1, 2021 Pays principal and interest to National Bank of Oman. Instructions Prepare journal entries for each of the transactions.
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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Question
- Waleed Company had the following transactions involving notes payable.
Aug. 1, 2020 |
Borrows $200,000 from National Bank of Oman by signing a 9-month, |
|
12% note. |
Dec. 1, 2020 |
Borrows $120,000 from Dhofar Bank by signing a 3-month, 10% note. |
Dec. 31, 2020 |
Prepares |
March 1, 2021 |
Pays principal and interest to Dhofar Bank. |
May 1, 2021 |
Pays principal and interest to National Bank of Oman. |
Instructions
Prepare
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