At December 31, 2017, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on

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At December 31, 2017, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on October 1, 2017. Interest and principal are payable at maturity on March 1, 2018.
(a) Prepare the December 31, 2017, adjusting entry for accrued interest.
(b) Prepare the January 1, 2018, reversing entry.
(c) Prepare the March 1, 2018, entry to record the receipt of cash at maturity for the note.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Accounting Principles

ISBN: 978-1119048503

7th Canadian Edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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