Bordewick Company borrowed $120,000 on a seven-month, 9 percent, interest-bearing note on October 1, 2009. Bordewick ends
Question:
Bordewick Company borrowed $120,000 on a seven-month, 9 percent, interest-bearing note on October 1, 2009. Bordewick ends its fiscal year on December 31. The note was paid with interest on April 30, 2010.
Required:
1. Prepare the entry for this note on October 1, 2009.
2. Prepare the adjusting entry for this note on December 31, 2009.
3. Indicate how the note and the accrued interest would appear on the balance sheet at December 31, 2009.
4. Prepare the entry to record the repayment of the note on April 30, 2010.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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1 2009 Oct 1 Cash 120000 Note Payable 120000 2 Dec 31 Interest Ex...View the full answer
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Related Book For 
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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