2- Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its building.The funds were borrowed by signing a 98,000 SR , 12%, one-year note payable.1. Prepare the entry to record the receipt of the funds on January 1, 2020.2. Prepare the entry to accrue the interest on June 30, 2020.3. Show the balance sheet presentation for the note and accrued interest at June 30.

When bond trades or the market price of the bond is below $1000 or par value it is called a discount…

Answered: 2- Amina borrowed 60,000 SR on January…

2- Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its bui The funds were borrowed by signing a 98,000 SR , 12%, one-year note payable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EA: Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1,...

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2- Amina borrowed 60,000 SR on January 1, 2020, from the local bank to expand its building.
The funds were borrowed by signing a 98,000 SR , 12%, one-year note payable.
1. Prepare the entry to record the receipt of the funds on January 1, 2020.
2. Prepare the entry to accrue the interest on June 30, 2020.
3. Show the balance sheet presentation for the note and accrued interest at June 30.

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