On December 31, 2023, Bramble Link Corporation received a four-year, 6%, $764,000 bank loan. The terms provide for payment of the bank loan with semi-annual instalment payments of $108,837 principal and interest, starting on June 30. Bramble has a March 31 year end and records adjusting entries annually.

On December 31, 2023, Bramble Link Corporation received a four-year, 6%, $764,000 bank loan. The terms provide for payment of the bank loan with semi-annual instalment payments of $108,837 principal and interest, starting on June 30. Bramble has a March 31 year end and records adjusting entries annually.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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Question

(b)
Your answer is partially correct.
Record the accrual of interest expense on March 31, 2024. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry
before credit entry)
Date Account Titles
Mar. 31
Interest Expense
Interest Payable
Debit
3390
Credit
3390

On December 31, 2023, Bramble Link Corporation received a four-year, 6%, $764,000 bank loan. The terms provide for payment of
the bank loan with semi-annual instalment payments of $108,837 principal and interest, starting on June 30. Bramble has a March 31
year end and records adjusting entries annually.
(a)
Your answer is correct.
Record the receipt of the bank loan on December 31, 2023, (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry
before credit entry)
Date Account Titles
Dec. 31
Cash
Bank Loan Payable
Debit
764000
Credit
764000

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