Crane Construction Ltd. borrowed $200,000 from Atco Finance Ltd. on October 1, 2020, by issuing a...

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Crane Construction Ltd. borrowed $200,000 from Atco Finance Ltd. on October 1, 2020, by issuing a nine-month note payable at 4% interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually. (a) For Crane Construction, record (1) the receipt of the $200,000 cash and the issuing of the note payable on October 1, 2020; (2) the accrual of interest on December 31, 2020; and (3) the payment of the note and interest on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date > Account Titles and Explanation (To record interest) (To record repayment of bank loan) Debit Credit Crane Construction Ltd. borrowed $200,000 from Atco Finance Ltd. on October 1, 2020, by issuing a nine-month note payable at 4% interest payable at maturity. Both companies have a December 31 year end and make adjusting entries annually. (a) For Crane Construction, record (1) the receipt of the $200,000 cash and the issuing of the note payable on October 1, 2020; (2) the accrual of interest on December 31, 2020; and (3) the payment of the note and interest on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date > Account Titles and Explanation (To record interest) (To record repayment of bank loan) Debit Credit

Answer rating: 100% (QA)

a To record the transactions for Crane Construction Ltd we will use the following account titles 1 C... View the full answer