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FUND.ACCT.PRIN -ONLINE ONLY >I<
22nd Edition
ISBN: 9780077632878
Author: Wild
Publisher: MCG
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Chapter 11, Problem 4QS
To determine

Notes Payable:

It is a negotiable debt instrument used to borrow money for the business operation purpose for specified period of time with certain interest.

Maturity of Notes Payable:

When the terms of a note payable come to an end, it is called maturity of notes payable.

To determine:

1. Computation of accrued interest payable on December 31, 2015.

2. Prepare journal entry to record the accrued interest expense at December 31, 2015.

3. Prepare journal entry for the maturity of note.

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Ayayai Corp. employs a five-day workweek Monday - Friday and a September 30 year-end. Normal weekly wages amount to $32900. If September 30 is a Wednesday, what is the appropriate journal entry on October 2, the next payday for Ayayai? A. Salaries and Wages Expense 19740 Salaries and Wages Payable 13160 Cash 32900 B. Salaries and Wages Payable 13160 Cash 13160 C. Salaries and Wages Expense 19740 Cash 19740 D. Salaries and Wages Expense 13160 Salaries and Wages Payable 19740 Cash 32900

Chapter 11 Solutions

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