Interest-Bearing Note Replacing an Unpaid Account Payable
Monte Cristo Products, which uses a perpetual inventory system, owed $770,000 on account for inventory purchased on November 1, 2020. The company’s fiscal year ends on December 31. Monte Cristo was unable to pay the amount owed by the February 1 due date because of financial difficulties. On February 1, 2021, it signed a $770,000, 12% interest-bearing note. This note was repaid with interest on September 1, 2021.
Required:
1. Prepare the entry recorded on November 1, 2020.
2. Prepare the adjusting entry recorded on December 31, 2020.
3. Prepare the entry recorded on February 1, 2021.
4. Prepare the entry recorded on September 1, 2021.
Accounting Information Systems
Corporate Financial Accounting
Financial & Managerial Accounting
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Microeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
Foundations of Business (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Financial And Managerial Accounting
Principles of Information Security (MindTap Course List)
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
Principles of Information Systems (MindTap Course List)
Fundamentals of Information Systems
Principles of Information Systems (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Management Of Information Security
Solid Waste Engineering
International Edition---engineering Mechanics: Statics, 4th Edition
Principles of Geotechnical Engineering (MindTap Course List)
EBK ELECTRICAL WIRING RESIDENTIAL
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Electric Motor Control
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Structural Analysis
Network+ Guide to Networks (MindTap Course List)
Financial & Managerial Accounting
Accounting (Text Only)
Accounting Information Systems
Managerial Accounting
Intermediate Accounting: Reporting And Analysis
Corporate Financial Accounting
Survey of Accounting (Accounting I)
Cornerstones of Cost Management (Cornerstones Series)
College Accounting (Book Only): A Career Approach
PAYROLL ACCT.,2019 ED.(LL)-TEXT
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial Accounting
College Accounting (Book Only): A Career Approach
Financial Accounting
Economics For Today
Purchasing and Supply Chain Management
Economics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Practical Management Science
Contemporary Marketing
Management, Loose-Leaf Version
Principles of Macroeconomics (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Macroeconomics
Exploring Economics
Principles of Microeconomics
Understanding Management (MindTap Course List)
Micro Economics For Today
MACROECONOMICS FOR TODAY
Pkg Acc Infor Systems MS VISIO CD
Microeconomics: Private and Public Choice (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)