FINANCIAL + MANAG. ACCT. (LL) W/CONNECT
FINANCIAL + MANAG. ACCT. (LL) W/CONNECT
9th Edition
ISBN: 9781264699841
Author: Wild
Publisher: MCG
Question
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Chapter 9, Problem 4BTN
To determine

Notes Payable:

Notes payable is a promissory note that is issued by the borrower to obtain a specific amount of money which the borrower promises to pay within a year on a specific date. It’s a kind of current liability.

Journal Entries:

Journal entries are the accounting transaction used to identify which accounts has been debited and credited in the journal. In the journal entries for every debit there must be a correspondence credit.

Rules of Journal Entries:

  • To increases balance of account: Assets Debit, Liabilities Credit, Expenses Debit, Revenue Credit, Capital Credit
  • To decreases balance of account: Assets Credit, Liabilities Debit, Expenses Credit, Revenue Debit, Capital Debit

1.

To identify: The best option.

2.

To determine

To prepare: Journal entries.

3.

To determine

To explain:-the journal entries prepare in part 2

4.

To determine

To prepare:-Journal entries assuming that the funds are borrowed on 1st December.

5.

To determine

To explain: The journal entries prepare in part 4.

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Chapter 9 Solutions

FINANCIAL + MANAG. ACCT. (LL) W/CONNECT

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