(a) Introduction: The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date. To record: Journal entry on 1 st December 2020.
(a) Introduction: The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date. To record: Journal entry on 1 st December 2020.
Solution Summary: The author explains that the company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
Chapter 8, Problem 76APSA
To determine
(a)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
Journal entry on 1st December 2020.
To determine
(b)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
Adjusting entry on 31st December 2020.
To determine
(c)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
Journal entry on 1st March 2021.
To determine
(d)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
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7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY