ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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Tangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September 1. Principal and interest are payable to the bank on March 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on November 30, would be:
A) debit Interest Expense, $8,000; credit Interest Payable, $8,000.
B) debit Interest Expense, $667; credit Interest Payable, $667.
C) No adjusting entry is needed on November 30.
D) debit Interest Expense, $2,667; credit Interest Payable, $2,667.
LARA Company secured a bank loan of $90,000, on 1/4/2020. In return, it signed a
10 month, 6%, note payable. LARA Co. closes its accounts annually, on December
31 of every year. The loan and total interest are to be paid to the bank at the end
of the loan term.
Required: the adjusting entry on December 31, 2020, will show a credit to interest
payable for...
Jenkins Inc. had the following transactions.
Sep 1 Loaned $20,000 to an employee, who signed a 9-month, 9% note. Interest and principal
will all be due on May 31.
Dec. 31- Accrued interest on the note. (Round to the nearest whole dollar amount.)
May 31 Received the interest on the note's maturity date.
PE
May 31
amount.)
Required:
Prepare the required journal entries. Use the MSWord link for the table to write your journal
entries. After you have written the journal entries on the table in the MSWord document provided,
Received the principal on the note's maturity date. (Round to the nearest whole dollar
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