CP 9-1 The following unadjusted accounts are taken from the records of Brown Corp. at December 31, 2019: Interest Expense Interest Payable 222 100 Bank Loan 201 12,000 632 200 Additional Information: The bank loan bears interest at 6% per year. It was obtained on April 1, 2019. Payment in full is due on March 31, 2020. Required: Prepare the adjusting entry at December 31, 2019.
CP 9-1 The following unadjusted accounts are taken from the records of Brown Corp. at December 31, 2019: Interest Expense Interest Payable 222 100 Bank Loan 201 12,000 632 200 Additional Information: The bank loan bears interest at 6% per year. It was obtained on April 1, 2019. Payment in full is due on March 31, 2020. Required: Prepare the adjusting entry at December 31, 2019.
Chapter1: Financial Statements And Business Decisions
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Cp 9-1
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ACC111-Student Te...
ASSIG N MENT
MATERIALS
Concept Self-check
1.
What is the difference between a current and non-current
liability?
2. What are some examples of current liabilities?
3. How are known current liabilities different from estimated current
liabilities?
4. What are some examples of estimated current liabilities?
5. How is an estimated current liability different from a contingent
liability?
6. How is a loan payable similar to a bond? How is it different?
7. How is a finance lease similar to a long-term loan from a bank?
How is it different?
Comprehension Problems
CP 9-1
The following unadjusted accounts are taken from the records of
Brown Corp. at December 31, 2019:
Bank Loan
201
Interest Expense
632
Interest Payable 222
12,000
200
100
Additional Information: The bank loan bears interest at 6% per year. It
was obtained on April 1, 2019. Payment in full is due on March 31,
2020.
Required: Prepare the adjusting entry at December 31, 2019.
CHAPTER NINE /Debt Financing: Current and Non-current Liabilities First US Edition
СР 9-2
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Current Liability
Current liability is an important segment in the balance sheet which can specify the details of required debt obligation which are meet within one year period of time. Examples for current liabilities are given below
- Accounts Payable
- Wages Payable
- Interest Payable
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