19th Edition

ISBN: 9781947172685

Author: OpenStax

Publisher: OpenStax College

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Textbook Question

Chapter 12, Problem 9PB

Pickles R Us is a pickle farm located in the Northeast. The following transactions take place:

A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%.

B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%.

C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan.

Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.

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Chapter 12, Problem 8PB

Chapter 12, Problem 10PB

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