Question

Provide the journal entries needed for each of the following situations:
a. On October 1, 2017, Utopia Ltd. arranges a $50,000 six-month working capital loan from a commercial lender. The money is deposited in Utopia's bank account. On March 1, 2018 Utopia repays the loan by paying the bank $51,250.
b. Tesseralik Inc. issues a $10,000,000 long-term bond. The company receives $9,950,000.
c. Risteen Corp. has a $500,000 loan secured against some property. The loan requires monthly payments of $10,750. For July 2017 $8,212 of the payment is interest and the remainder principal.



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  • CreatedFebruary 26, 2015
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