Crane Construction Ltd. borrowed $396,000 from Atco Finance Ltd. on October 1, 2023, by issuing a 6% nine-month note payable, with principal and interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually. (a) For Sheffield Construction, record (1) the receipt of the $396,000 cash and the issue of the note payable on October 1, 2023; (2) the accrual of interest on December 31, 2023; and (3) the payment of the note and interest on July 1, 2024. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Account Titles Date Oct. 1, 2023 Dec. 31, 2023 July 1, 2024 Debit Cr
Crane Construction Ltd. borrowed $396,000 from Atco Finance Ltd. on October 1, 2023, by issuing a 6% nine-month note payable, with principal and interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually. (a) For Sheffield Construction, record (1) the receipt of the $396,000 cash and the issue of the note payable on October 1, 2023; (2) the accrual of interest on December 31, 2023; and (3) the payment of the note and interest on July 1, 2024. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Account Titles Date Oct. 1, 2023 Dec. 31, 2023 July 1, 2024 Debit Cr
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Crane Construction Ltd. borrowed $396,000 from Atco Finance Ltd. on October 1, 2023, by issuing a 6% nine-month note payable,
with principal and interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually.
(a)
For Sheffield Construction, record (1) the receipt of the $396,000 cash and the issue of the note payable on October 1, 2023: (2)
the accrual of interest on December 31, 2023; and (3) the payment of the note and interest on July 1, 2024. (Credit account titles
are automatically indented when the 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. List all debit entries before credit entries.)
Date
Account Titles
Oct. 1, 2023
Dec. 31, 2023
July 1, 2024
Debit
Cr
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