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During 2021, Wildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72.000. Interest and principal are payable at maturity. 2. October 1,2021, issued a three-month, 5% note for $42.000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.

During 2021, Wildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72.000. Interest and principal are payable at maturity. 2. October 1,2021, issued a three-month, 5% note for $42.000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.

FINANCIAL ACCOUNTING
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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During 2021, Wwildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72,000. Interest and principal are payable at maturity. 2. October 1, 2021, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
Transcribed Image Text:During 2021, Wwildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72,000. Interest and principal are payable at maturity. 2. October 1, 2021, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
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