On April 1, 2010, Ranee Company borrowed $20,000 from its bank by issuing a 9 , 12 month note, with the interest to be paid on the maturity date Prepare journal entries to record the issuance of the note and the related year end adjusting entry ...

On April 1, 2010, Ranee Company borrowed $20,000 from its bank by issuing a 9%, 12-month note,

Question:

On April 1, 2010, Ranee Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the interest to be paid on the date. Prepare journal entries to record the issuance of the note and the related-year end adjusting entry.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...