(a) (b) Prepare the journal entry to record the proceeds of the note. Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.
(a) (b) Prepare the journal entry to record the proceeds of the note. Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cullumber Company borrows $47,000 on July 1 from the bank by signing a $47,000, 13%, 1-year note payable. Interest will be
repaid at maturity.
(a)
(b)
Prepare the journal entry to record the proceeds of the note.
Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end
of the year.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter O for the amounts.)
Account Titles and Explanation
Date
July 1
Dec. 31 v
Debit
Credit
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