Crane Limited borrowed $75,600 from National Limited on July 1 and Issued a three-month note payable at 6% due at maturity on October 1. Crane's year end Is August 31 and the company records adjusting entries only at that time. Prepare the journal entry that National Limited would record on the note It received from Crane Limited, assuming It makes adjusting entries monthly, for the payment of $75,600 to Crane Limited on July 1. (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 debit entry before credit entry) Date Account Titles July 1 Notes Receivable (b) Your answer is correct. Cash e Textbook and Media List of Accounts ite Your answer is partially correct. Account Titles Interest Receivable Interest Income Prepare the journal entries that National Limited would record on the note It received from Crane Limited, assuming it makes adjusting entries monthly, for the accrual of Interest Income on July 31, August 31, and September 30. (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. Record journal entries in the order presented in the question statement. List all debit entries before credit entries.) Interest Receivable Interest Income Interest Receivable Debit Interest Income 75600 Debit 376 2266 Credit 1134 75600 Assistance Used Attempts: unlimited Credit 10000 1512
Crane Limited borrowed $75,600 from National Limited on July 1 and Issued a three-month note payable at 6% due at maturity on October 1. Crane's year end Is August 31 and the company records adjusting entries only at that time. Prepare the journal entry that National Limited would record on the note It received from Crane Limited, assuming It makes adjusting entries monthly, for the payment of $75,600 to Crane Limited on July 1. (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 debit entry before credit entry) Date Account Titles July 1 Notes Receivable (b) Your answer is correct. Cash e Textbook and Media List of Accounts ite Your answer is partially correct. Account Titles Interest Receivable Interest Income Prepare the journal entries that National Limited would record on the note It received from Crane Limited, assuming it makes adjusting entries monthly, for the accrual of Interest Income on July 31, August 31, and September 30. (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. Record journal entries in the order presented in the question statement. List all debit entries before credit entries.) Interest Receivable Interest Income Interest Receivable Debit Interest Income 75600 Debit 376 2266 Credit 1134 75600 Assistance Used Attempts: unlimited Credit 10000 1512
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Crane Limited borrowed $75,600 from National Limited on July 1 and Issued a three-month note payable at 6% due at maturity on
October 1. Crane's year end Is August 31 and the company records adjusting entries only at that time.
(a)
Prepare the Journal entry that National Limited would record on the note It received from Crane Limited, assuming It makes
adjusting entries monthly, for the payment of $75,600 to Crane Limited on July 1. (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 debit entry before credit entry.)
July 1
(b)
Your answer is correct.
Date Account Titles
Notes Receivable
Cash
e Textbook and Media
List of Accounts
ite
➡ Your answer is partially correct.
Account Titles
Interest Receivable
Interest Income
Prepare the journal entries that National Limited would record on the note It received from Crane Limited, assuming It makes
adjusting entries monthly, for the accrual of Interest Income on July 31, August 31, and September 30. (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. Record journal entries in the order presented in the question statement. List all debit entries before credit
entries.)
Interest Receivable
Interest Income
Interest Receivable
Debit
Interest Income
75600
Debit
378
1000
2268
Credit
1134
75600
Assistance Used
Attempts: unlimited
Credit
DOOOOO
378
756
1512
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education