Chapter 11, Problem P11.35CP

To determine

Concept Introduction:

Accounting for Liabilities of a known amount:

In accrual basis of accounting, there is a need to properly record all the incomes, expenses, assets and liabilities of a particular accounting period in order to prepare a true picture of the financial statements of the entity. Similarly, when it comes to liabilities, it is important to record all the liabilities whether they have been paid or to be paid in the next accounting period.

To prepare:

Journal entries for the notes payable