On June 15, 20 x 0 Mr. Gerald Green Gabriel, owner of Boracay Ocean Park Hotel, availed a business loan from Filipinas Bank in the amount of P1,000,000.00. Principal repayment shall be on June 15, 20x1. Interest shall be paid every 15th day of the month @ 10% per annum beginning July 15, 20x0.In the book of Filipinas Bank.... In the books of Filipinas Bank...Required: A. Assume that Filipinas Bank uses no reversing entry method of recording,a. Prepare the adjusting entry on June 30, 20x0.b. Prepare the closing entry on June 30, 20x0.c. Prepare the entry on July 15, 20x0.B. Assume that the company uses with reversing entry method of recordinga 'Prepare the adjusting entry on June 30, 20x0,b. Prepare the closing entry on June 30, 20x0,c. Prepare the reversing entry on July 1, 20x0.d. Prepare the entry on July 15, 20x0.Use the following account titles:CashInterest ReceivableInterest IncomeIncome and Expense Summary

The journal entries prepared at the year end to adjust the accrued or deferral amounts of expenses…

Answered: 4. In the books of Filipinas Bank...

Business

Accounting

4. In the books of Filipinas Bank...

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On June 15, 20 x 0 Mr. Gerald Green Gabriel, owner of Boracay Ocean Park Hotel, availed a business loan from Filipinas Bank in the amount of P1,000,000.00. Principal repayment shall be on June 15, 20x1. Interest shall be paid every 15th day of the month @ 10% per annum beginning July 15, 20x0.

In the book of Filipinas Bank....

In the books of Filipinas Bank...
Required: A. Assume that Filipinas Bank uses no reversing entry method of recording,
a. Prepare the adjusting entry on June 30, 20x0.
b. Prepare the closing entry on June 30, 20x0.
c. Prepare the entry on July 15, 20x0.
B. Assume that the company uses with reversing entry method of recording
a 'Prepare the adjusting entry on June 30, 20x0,
b. Prepare the closing entry on June 30, 20x0,
c. Prepare the reversing entry on July 1, 20x0.
d. Prepare the entry on July 15, 20x0.
Use the following account titles:
Cash
Interest Receivable
Interest Income
Income and Expense Summary

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