In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. Record the payment of the notes payable. Note: Enter debits before credits. Transaction 1-2 General Journal Notes payable Interest expense Interest payable Cash Record entry Clear entry Debit 20,000,000 Credit View general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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View transaction list
Journal entry worksheet
2
Transaction
f-2
3
Record entry
5
Notes payable
Interest expense
Interest payable
Cash
In March, paid the entire amount of the note on its March 1 due date, using
proceeds from a February issuance of $17.5 million of 10-year bonds at face
value, along with other available cash. Record the payment of the notes
payable.
Note: Enter debits before credits.
General Journal
6
Clear entry
7
8
Debit
20,000,000
Credit
View general journal
Transcribed Image Text:View transaction list Journal entry worksheet 2 Transaction f-2 3 Record entry 5 Notes payable Interest expense Interest payable Cash In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. Record the payment of the notes payable. Note: Enter debits before credits. General Journal 6 Clear entry 7 8 Debit 20,000,000 Credit View general journal
Camden Biotechnology began operations in September 2024. The following selected
transactions relate to liabilities of the company for September 2024 through March 2025.
Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024
On September 5, opened checking accounts at Second Commercial Bank and negotiated a
short-term line of credit of up to $23,000,000 at the bank's prime rate (9.5% at the time).
The company will pay no commitment fees. On October 1, borrowed $20 million cash from
Second Commercial Bank under the line of credit and issued a five-month promissory note.
Interest at the prime rate of 9% was payable at maturity. Management planned to issue 10 -
year bonds in February to repay the note. Received $1,800 of refundable deposits in
December for reusable containers used to transport and store chemical - based products. For
the September-December period, sales on account totaled $4,740,000. The state sales tax
rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many
individual sales transactions for the period.) Recorded the adjusting entry for accrued interest.
2025 In March, paid the entire amount of the note on its March 1 due date, using proceeds
from a February issuance of $17.5 million of 10-year bonds at face value, along with other
available cash. The storage containers covered by refundable deposits are expected to be
returned during the first nine months of the year. Half of the containers were returned in
March 2025.
Transcribed Image Text:Camden Biotechnology began operations in September 2024. The following selected transactions relate to liabilities of the company for September 2024 through March 2025. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024 On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $23,000,000 at the bank's prime rate (9.5% at the time). The company will pay no commitment fees. On October 1, borrowed $20 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 9% was payable at maturity. Management planned to issue 10 - year bonds in February to repay the note. Received $1,800 of refundable deposits in December for reusable containers used to transport and store chemical - based products. For the September-December period, sales on account totaled $4,740,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.) Recorded the adjusting entry for accrued interest. 2025 In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. The storage containers covered by refundable deposits are expected to be returned during the first nine months of the year. Half of the containers were returned in March 2025.
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