Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $300,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 6%. B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 10%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 July 9 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 Oct. 10 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 Nov. 9 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 fill in the blank 29 fill in the blank 30

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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Mohammed LLC is a growing consulting firm. The following transactions take place during the current year.

A. On June 10, Mohammed borrows $300,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 6%.

B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 10%.

C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan.

Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar.

June 10	fill in the blank 2	fill in the blank 3
	fill in the blank 5	fill in the blank 6
July 9	fill in the blank 8	fill in the blank 9
	fill in the blank 11	fill in the blank 12
Oct. 10	fill in the blank 14	fill in the blank 15
	fill in the blank 17	fill in the blank 18
	fill in the blank 20	fill in the blank 21
Nov. 9	fill in the blank 23	fill in the blank 24
	fill in the blank 26	fill in the blank 27
	fill in the blank 29	fill in the blank 30

Mohammed LLC is a growing consulting firm. The following transactions take place during the current
year.
A. On June 10, Mohammed borrows $300,000 from a bank to cover the initial cost of expansion. Terms
of the loan are payment due in four months from June 10, and annual interest rate of 6%.
B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9,
and an annual interest rate of 10%.
C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the
July 9 loan.
Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If
an amount box does not require an entry, leave it blank. Round intermediate calculation and final
answers to the nearest whole dollar.
June 10
July 9
Oct. 10
Nov. 9
00
00

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