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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 |
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December 31, 2017 | ||||||
March 31, 2018 | ||||||
Note 2 August 1, 2017 |
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December 31, 2017 | ||||||
January 31, 2018 |
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Chapter 4 Solutions
Financial Accounting
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
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