Sheridan Company borrows $53,400 on July 1 from the bank by signing a $53,400, 8%, 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.
Sheridan Company borrows $53,400 on July 1 from the bank by signing a $53,400, 8%, 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.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.6P
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Brief Exercise 11-02
Sheridan Company borrows $53,400 on July 1 from the bank by signing a $53,400, 8%, one-year note payable.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a)
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Prepare the |
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(b)
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Prepare the journal entry to record accrued interest at December 31, assuming |
(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
No.
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Date
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Account Titles and Explanation
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Debit
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Credit
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(a) |
July 1Dec. 31
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|
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||
(b) |
July 1Dec. 31
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