On September 15, Berto Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a loan from a friend. The service center uses the fiscal accounting period ending September 30. Required: Entries on date of issue and end of September

On September 15, Berto Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a loan from a friend. The service center uses the fiscal accounting period ending September 30. Required: Entries on date of issue and end of September

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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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

On September 15, Berto Motor Service Center issued a 90-day, 18% note amounting to P10,000
for a loan from a friend. The service center uses the fiscal accounting period ending September
30.
Required: Entries on date of issue and end of September

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