n June 1, Crane Company Ltd. borrows $66,000 from Acme Bank on a 6-month, $66,000, 8% note. The note matures on December 1. Prepare the entry on June 1. (
n June 1, Crane Company Ltd. borrows $66,000 from Acme Bank on a 6-month, $66,000, 8% note. The note matures on December 1. Prepare the entry on June 1. (
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On June 1, Crane Company Ltd. borrows $66,000 from Acme Bank on a 6-month, $66,000, 8% note. The note matures on December 1.
Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
June 1
|
enter an account title for the entry on June 1
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the entry on June 1
|
enter a debit amount
|
enter a credit amount
|
eTextbook and Media
List of Accounts
Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
June 30
|
enter an account title for the adjusting entry on June 30
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the adjusting entry on June 30
|
enter a debit amount
|
enter a credit amount
|
eTextbook and Media
List of Accounts
Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
|
Dec. 1
|
enter an account title for the entry at maturity on December 1
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the entry at maturity on December 1
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title for the entry at maturity on December 1
|
enter a debit amount
|
enter a credit amount
|
eTextbook and Media
List of Accounts
What was the total financing cost (interest expense)?
| Total interest expense | $enter the Total interest expense in dollars |
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