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On Sept 1, 2021, Firm A issued a 9-month, 12% promissory note in exchange for cash of $240,000. Interest was payable at maturity. Firm A's fiscal period is the calendar year. a. Prepare the journal entry for the issuance of the note. Account Debit Credit b. Prepare the appropriate adjusting entry for the note on December 31, 2021. Account Debit Credit c. Prepare the journal entry for the payment of the note at maturity. Account Debit Credit

On Sept 1, 2021, Firm A issued a 9-month, 12% promissory note in exchange for cash of $240,000. Interest was payable at maturity. Firm A's fiscal period is the calendar year. a. Prepare the journal entry for the issuance of the note. Account Debit Credit b. Prepare the appropriate adjusting entry for the note on December 31, 2021. Account Debit Credit c. Prepare the journal entry for the payment of the note at maturity. Account Debit Credit

FINANCIAL ACCOUNTING
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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On Sept 1, 2021, Firm A issued a 9-month, 12% promissory note in exchange for cash of $240,000. Interest was payable at maturity. Firm A's fiscal period is the calendar year. a. Prepare the journal entry for the issuance of the note. Account Debit Credit b. Prepare the appropriate adjusting entry for the note on December 31, 2021. Account Debit Credit c. Prepare the journal entry for the payment of the note at maturity. Account Debit Credit
Transcribed Image Text:On Sept 1, 2021, Firm A issued a 9-month, 12% promissory note in exchange for cash of $240,000. Interest was payable at maturity. Firm A's fiscal period is the calendar year. a. Prepare the journal entry for the issuance of the note. Account Debit Credit b. Prepare the appropriate adjusting entry for the note on December 31, 2021. Account Debit Credit c. Prepare the journal entry for the payment of the note at maturity. Account Debit Credit
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