Why is it necessary to make an adjusting entry for accrued interest on an interest-bearing note payable? Can the entry be reversed?
Answer to relevant QuestionsExplain how to determine the maturity date of a note. Make entries in a notes payable register to document the following events. Show the computation of the interest and due dates. July 15 Gave a 30-day, 5 percent note, dated July 15, for $ 4,000, to Davies Company to apply on ...The following were among the transactions of Kirsten’s Craft Shop during this year. The firm, whose fiscal year ends on December 31, uses a periodic inventory system. Jan. 25 Bought merchandise on account from Rossy ...Your supervisor has asked you to audit some journal entries recorded by her client’s bookkeeper on the following page. Review the following transactions. If there is an error, rejournalize the entry. If the bookkeeper’s ...On March 11, Rainz Company received a 90-day, 6 percent note for $ 1,500, dated March 11, from J. Rose, a charge customer, to satisfy his open account receivable. a. What is the due date of the note? b. How much interest is ...
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