Essential Company, which manufactures steel tubing and casing for automobile production, borrowed $432,000 on January 1 to finance the purchase of a new plece of machinery with new heating technology. The terms of Essential's note dictate that it is a 8-month, 12%, interest-bearing note. Required: 1. Record the borrowing transaction. If an amount box does not require an entry, leave it blank Jan. 1 (Record issuance of note payable) 2. Record the repayment transaction. If an amount box does not require an entry, leave it blank. Sept. 1 88

Essential Company, which manufactures steel tubing and casing for automobile production, borrowed $432,000 on January 1 to finance the purchase of a new plece of machinery with new heating technology. The terms of Essential's note dictate that it is a 8-month, 12%, interest-bearing note. Required: 1. Record the borrowing transaction. If an amount box does not require an entry, leave it blank Jan. 1 (Record issuance of note payable) 2. Record the repayment transaction. If an amount box does not require an entry, leave it blank. Sept. 1 88

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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