On January 1, 20X1, Bravo Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepare the general journal adjusting entry needed for December 31, 20X1. If no entry is required then write "No Entry Required."

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
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 January 1, 20X1, Bravo Company borrowed $24,000 to
purchase equipment. The loan is to be repaid plus interest
of 10% per year, on December 31, 20X2. Prepare the general
journal adjusting entry needed for December 31, 20X1. If no
entry is required then write "No Entry Required."
Transcribed Image Text:On January 1, 20X1, Bravo Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepare the general journal adjusting entry needed for December 31, 20X1. If no entry is required then write "No Entry Required."
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