On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery truck Interest is paid monthly in arrears on the first day of the next month. Required: Prepare the company's yearend adjusting entry or entries, and the journal entry to record the interest payment on January 1, 2022.
On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery truck Interest is paid monthly in arrears on the first day of the next month. Required: Prepare the company's yearend adjusting entry or entries, and the journal entry to record the interest payment on January 1, 2022.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery truck Interest is paid monthly in arrears on the first day of the next month.
Required: Prepare the company's yearend
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