On December 16, Carboy, Incorporated, borrows $120,000 cash from Third National Bank at 9 percent annual interest. The note is due in 45 days. At December 31, Carboy records any unpaid interest with an adjusting entry. On January 30 of the next year, Carboy pays the principal and interest owed on the bank note. Prepare the January 30 entry by Carboy for the payment (maturity) of the note plus interest by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
On December 16, Carboy, Incorporated, borrows $120,000 cash from Third National Bank at 9 percent annual interest. The note is due in 45 days. At December 31, Carboy records any unpaid interest with an adjusting entry. On January 30 of the next year, Carboy pays the principal and interest owed on the bank note. Prepare the January 30 entry by Carboy for the payment (maturity) of the note plus interest by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 2P: Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a...
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On December 16, Carboy, Incorporated, borrows $120,000 cash from Third National Bank at 9 percent annual interest. The note is due in 45 days. At December 31, Carboy records any unpaid interest with an
Prepare the January 30 entry by Carboy for the payment (maturity) of the note plus interest by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Transcribed Image Text:Journal entry worksheet
1
On December 16, Carboy, Inc., borrows $120,000 cash from Third National
Bank at 9 percent annual interest. The note is due in 45 days. At December
31, Carboy records any unpaid interest with an adjusting entry. On January 30
of the next year, Carboy pays the principal and interest owed on the bank
Note: Enter debits before credits.
Date
Jan. 30
General Journal
Debit
Credit
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