Skysong, Inc. had the following transactions involving notes payable. July 1, 2022 Borrows $52,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions.
Skysong, Inc. had the following transactions involving notes payable. July 1, 2022 Borrows $52,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 3CE
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Skysong, Inc. had the following transactions involving notes payable.
July 1, 2022 | Borrows $52,500 from First National Bank by signing a 9-month, 8% note. | |
Nov. 1, 2022 | Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note. | |
Dec. 31, 2022 | Prepares |
|
Feb. 1, 2023 | Pays principal and interest to Lyon County State Bank. | |
Apr. 1, 2023 | Pays principal and interest to First National Bank. |
Prepare journal entries for each of the transactions.
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