On July 1 2019, Barokah Company issued RM45,000, notes payable to fund its business with 4.5% interest within 4 years. Accounting period ends every December 31. REQUIRED: a) Calculate the amount of interest applicable to the notes payable. b) Determine the maturity date of the notes payable. c) Prepare journal entries to record : ii) iii) The issuance of the notes payable. The accrual of interest on December 31 2019. The redemption of the notes payable on maturity date.
On July 1 2019, Barokah Company issued RM45,000, notes payable to fund its business with 4.5% interest within 4 years. Accounting period ends every December 31. REQUIRED: a) Calculate the amount of interest applicable to the notes payable. b) Determine the maturity date of the notes payable. c) Prepare journal entries to record : ii) iii) The issuance of the notes payable. The accrual of interest on December 31 2019. The redemption of the notes payable on maturity date.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.6AP
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