On June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan. Interest is due at the beginning of each month, starting July 1. Instructions Prepare the entries listed associated with the bank loan. (a) Prepare the entry on June 1 when the loan was received. (b) Prepare any adjusting entries needed on June 30 to prepare financial statements. (c) Prepare the entry or entries required in July. (d) Prepare the entry to record repayment of the loan at maturity on August 1.
On June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan. Interest is due at the beginning of each month, starting July 1. Instructions Prepare the entries listed associated with the bank loan. (a) Prepare the entry on June 1 when the loan was received. (b) Prepare any adjusting entries needed on June 30 to prepare financial statements. (c) Prepare the entry or entries required in July. (d) Prepare the entry to record repayment of the loan at maturity on August 1.
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
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
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On June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan. Interest is due at the beginning of each month, starting July 1.
Instructions
Prepare the entries listed associated with the bank loan.
(a) Prepare the entry on June 1 when the loan was received.
(b) Prepare any
(c) Prepare the entry or entries required in July.
(d) Prepare the entry to record repayment of the loan at maturity on August 1.
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