Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the employee pay the principal and 8% interest on September 30, 2019. Assume the company makes adjusting entries only at year-end on December 31. a. Record the establishment of the note b. Record any necessary end-of-period adjusting entry to be made at the end of 2018 c. Record the receipt of interest and principal on September 30,2019

Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the employee pay the principal and 8% interest on September 30, 2019. Assume the company makes adjusting entries only at year-end on December 31. a. Record the establishment of the note b. Record any necessary end-of-period adjusting entry to be made at the end of 2018 c. Record the receipt of interest and principal on September 30,2019

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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