Sheffield Company borrows $66,000 on July 1 from the bank by signing a $66,000, 12%, one-year...

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Sheffield Company borrows $66,000 on July 1 from the bank by signing a $66,000, 12%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Cash Notes Payable Dec. 31 Interest Expense Interest Payable Debit 66000 Credit 66000 Sheffield Company borrows $66,000 on July 1 from the bank by signing a $66,000, 12%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Cash Notes Payable Dec. 31 Interest Expense Interest Payable Debit 66000 Credit 66000

Answer rating: 100% (QA)

Answer To prepare the journal entries requested we need to follow the information ... View the full answer