Maxx Company borrowed P10,000 from the bank signing a 9%, 3-month note on September 1. Principal and interest are payable tothe bank on December 1. If Maxx Company prepares monthly financial statements, the adjusting entry to recognize interest onSeptember 30 would be:Adebit - interest expense, P900; credit - interest payable, P900debit - cash, P225; credit - interest payable, P225debit - notes payable, P900; credit - cash, P900Ddebit - interest expense, P75; credit - interest payable, P75 RSV Company purchased a laptop for P24,000 on December 1. It is estimated that annual depreciation on the laptop will be P4,800.If financial statements are to be prepared on December 31, RSV should make which adjusting entry in the year of purchase?A) debit - depreciation expense, P1,920; credit - accumulated depreciation, P1,920Вdebit - office equipment, P2,400; credit - accumulated depreciation, P2,400debit - depreciation expense, P400; credit - accumulated depreciation, P400debit - depreciation expense, P4,800; credit - accumulated depreciation, P4,800

Adjusting entries are also known as closing entries because these are prepared at the time of…

Answered: Maxx Company borrowed P10,000 from the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A business issued a 120-day, 6% note for $9,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. a. b.
Subject:- accounting
A business issued a 120-day, 10% note for $255,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year and round amounts to the nearest whole dollar. Refer to the Chart of Accounts for exact wording of account titles.
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