Future Tech borrows $19,200 on August 1 from the bank by signing a $19,200, 9%, 1-year...

 

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Future Tech borrows $19,200 on August 1 from the bank by signing a $19,200, 9%, 1-year note payable. Adjusting entries are made only at the end of the year. a. Prepare the entry to record the proceeds of the note. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record issuance of a 9%, 1-year note.) Debit Credit b. Prepare the entry to record accrued interest at December 31. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To accrue interest for 5 months on note.) Debit Credit* Future Tech borrows $19,200 on August 1 from the bank by signing a $19,200, 9%, 1-year note payable. Adjusting entries are made only at the end of the year. a. Prepare the entry to record the proceeds of the note. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record issuance of a 9%, 1-year note.) Debit Credit b. Prepare the entry to record accrued interest at December 31. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To accrue interest for 5 months on note.) Debit Credit*

Answer rating: 100% (QA)

1 a Prepare the entry to record the proceeds of the note Debi... View the full answer