Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Textbook Question
Chapter 4, Problem 4.14E
Determining Financial Statement Effects of Adjustments for Interest on Two Notes
Note 1: On April 1, 2017. Warren Corporation received a $30,000. 10 percent note from a customer in settlement of a $30,000 open
Note 2: On August 1, 2017, to meet a cash shortage. Warren Corporation obtained a $30,000. 12 percent loan from a local hank. The principal of the note and interest expense are payable at the end of six months.
Required:
For the relevant transaction dates of each note, indicate the amounts and the direction of effects on the elements of the
| Date | BALANCE SHEET | INCOME STATEMENT | ||||
| Assets | Liabilities | Stockholders’ Equity | Revenues | Expenses | Net Income | |
| Note1 April 1, 2017 |
||||||
| December 31, 2017 | ||||||
| March 31, 2018 | ||||||
| Note 2 August 1, 2017 |
||||||
| December 31, 2017 | ||||||
| January 31, 2018 | ||||||
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Chapter 4 Solutions
Financial Accounting
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