Nicole thinks that her business, Nicole's Getaway Spa (NGS), is doing really well and she is planning a large expansion. With such alarge expansion, Nicole will need to finance some of it using debt. She signed a one-year note payable with the bank for $53,000 witha6 percent interest rate. The note was issued October 1, 2020; Interest is payable annually, and the end of Nicole's accounting periodis December 31.Required: Required:Prepare the Journal entries required from the issuance of the note until its maturity on September 30, 2021, assuming that no entrieare made other than at the end of the accounting period and when the note reaches its maturity. (Do not round intermediatecalculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Note payable is one of the liability of the business, on which regular interest payments needs to be…

Required: Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2021, assuming that no entr are made other than at the end of the accounting period and when the note reaches its maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Required: Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2021, assuming that no entr are made other than at the end of the accounting period and when the note reaches its maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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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Nicole thinks that her business, Nicole’s Getaway Spa (NGS), is doing really well and she isplanning a large expansion. With such a large expansion, Nicole will need to finance some ofit using debt. She signed a one-year note payable with the bank for $50,000 with a 6 percentinterest rate. The note was issued October 1, 2014; interest is payable semiannually; and the end ofNicole’s accounting period is December 31.Required:Prepare the journal entries required from the issuance of the note until its maturity on September30, 2015, assuming that no entries are made other than at the end of the accounting period, wheninterest is payable, and when the note reaches its maturity.
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