Dougald Construction Ltd. borrowed $250,000 from TD Bank on October 1, 2014, for a nine-month period; 5%
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Instructions
(a) For Dougald Construction, record
(1) The receipt of the bank loan on October 1, 2014;
(2) The accrual of interest on December 31, 2014;
(3) The payment of the loan on July 1, 2015.
(b) For the TD Bank, record
(1) The issue of the bank loan on October 1, 2014;
(2) The accrual of interest on December 31, 2014;
(3) The collection of the loan on July 1, 2015.
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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