Question: Maloney Company borrowed $60,000 on a two-year, 8% note dated October 1, 2011. Interest is payable annually on October 1, 2012, and October 1, 2013,

Maloney Company borrowed $60,000 on a two-year, 8% note dated October 1, 2011. Interest is payable annually on October 1, 2012, and October 1, 2013, the maturity date of the note. The company prepares its financial statements on a calendar-year basis. Prepare all journal entries relating to the note for 2011, 2012, and 2013.

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2011 Oct 1 Cash 60000 Notes Payable 60000 Borrowed 60000 on a twoyear 8 note Dec 31 Interest Expense ... View full answer

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