On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annualinstalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at yearend on December 31.(a)Your answer is correct.Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, e.g. 5,255.)+ACash Payment1090910909+AInterest Expense1200617LAReduction of Principal970910292tAPrincipal Balance2000010291-1 (b)Record (1) the receipt of $20,000 cash from the loan on July 1, 2023; (2) the accrual of interest on December 31, 2023; (3) thefirst instalment payment on June 30, 2024; and (4) the accrual of interest on December 31, 2024. (Round answers to O decimalplaces, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Date2023uly 1Dec. 312024ne 30Your answer is partially correct.Dec. 31Account TitlesCashBank Loan PayableInterest ExpenseInterest PayableInterest ExpenseBank Loan PayableInterest PayableCashInterest ExpenseInterest PayableDebit200001600600600309CreditITO DOM2000060010909309

On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.

On July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 6%. The loan is payable in two annual instalments of $10,909 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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