Hornsby Company borrowed $20,000 at 8% interest by issuing a note payable. The terms of the note
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Hornsby Company borrowed $20,000 at 8% interest by issuing a note payable. The terms of the note require yearly interest payments for seven years and repayment of the principal at the end of seven years. Make the necessary journal entries to record the following transactions:
1. Issuance of the note payable
2. Payment of the first interest expense
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1 Cash 20000 Notes Payable 20000 Borrowed 20000 a...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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