Midshipmen Company borrows $16,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2022. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0).
Midshipmen Company borrows $16,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2022. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Midshipmen Company borrows $16,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2022.
Required:
-
1.&2. Record the necessary entries in the
Journal Entry Worksheet below. -
3. Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0).
Transcribed Image Text:Journal entry worksheet
1
Record the borrowing for Midshipmen on July 1, 2021.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
July 01, 2021
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet
1
2
>
Record the adjusting entry for Midshipmen on December 31, 2021.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
December 31,
2021
Record entry
Clear entry
View general journal
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