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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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Question

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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