FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
FIN.ACCT-TOOLS F/DECI.MAKERS-TEXT+WILEY+
9th Edition
ISBN: 9781119598312
Author: Kimmel
Publisher: WILEY C
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Chapter 10, Problem 10.13E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the issuance of bonds at face value for Company K.

(b)

To determine

To prepare: The adjustment entry to record accured interest of Company K as on 31st December.

(c)

To determine

To prepare: The journal entry to record the payment of interest for Company K on January 1.

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