On July 1, 2014, Rogers Corp. took out a 60-day, $100,000 loan at the bank. On July
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Required
1. What is the interest rate on the loan? Explain your answer.
2. Prepare the entry on Rogers Corp.s books on August 31, 2014, when the company repays the principal and interest on the loan.
Transcribed Image Text:
Interest Expense Interest Payable To record interest for one month on a $100,000 loan. July 31 Journal Entry Analysis 500 500 Balance Sheet Income Statement STOCKHOLDERS' NET = INCOME (500) LIABILITIES Interest Payable REVENUES ASSETS EQUITY (500) EXPENSES Interest Expense 500 500
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Related Book For
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton
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