Hanna Company borrows $80,000 on July 1 from the bank by signing a $80,000, 10%, one-year note
Question:
Hanna Company borrows $80,000 on July 1 from the bank by signing a $80,000, 10%, one-year note payable.
(a) Prepare the journal entry to record the proceeds of the note.
(b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.
Step by Step Answer:
July 1 Cash 80000 Notes Payable 8...View the full answer
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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