Question: On March 1, Jordan Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note. Instructions Prepare the necessary entries below associated

On March 1, Jordan Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note.

Instructions

Prepare the necessary entries below associated with the note payable on the books of Jordan Company.

(a) Prepare the entry on March 1 when the note was issued.

(b) Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.

(c) Prepare the adjusting entry at August 31 to accrue interest.

(d) Prepare the entry to record payment of the note at maturity.

Step by Step Solution

★★★★★

3.44 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style46 msonumberformat00220022 00000220022 00000220022 00220022 msostylenameCurrency msostyleid4 style0 msonumberformatGenera... View full answer

blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

68-B-A-F-A (474).xlsx

300 KBs Excel File

Students Have Also Explored These Related Accounting Questions!

Q:

A company borrowed cash from the bank by signing a 5-year, 8% installment note. The present value of an annuity factor at 8% for 5 years is 3.9927. Each annual payment equals $75,000. The present...

Q:

Sweeney, Inc. borrowed $30,000 from the bank by signing a 9-month note payable. The proper accounting treatment of recording the note will increase assets and liabilities. decrease assets and...

Q:

On March 1, Jordan Company borrows $150,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note. Instructions prepare the necessary entries below associated with the note payable...

Q:

Finally, Reza mentions that he was hired into the CFO role on an interim basis with the possibility of being made permanent based on performance. Although he wants to succeed in this role, he does...

Q:

1. What are the ethical issues in this situation? 2. What are the basic arguments for and against extreme measures to fight unionization efforts? 3. What do you think most managers would do in this...

Q:

The representative cost drivers in the right column of this table are randomized so they do not match the list of functions in the left column. Required 1. Match each function with its representative...

Q:

=+27. Investing in equipment. KickGrass Lawncare is a service that cares for lawns in a large, affluent community. Shawn Overgrowth, the owner, is considering the purchase of new zero-turn riding...

Q:

Rosenberg Manufacturing Corp. is considering marketing their new hearing aid in the city of Big Smoke. This device is targeted at the hearing impaired over the age of 60 years. As she considers the...

Q:

TERM Treasury stock Restriction of retained earnings Return on shareholders' equity Earnings - price ratio Limited liability company PHRASE Preferred practice is to disclose in the notes to the...

Q:

Select Apparel purchased 90 new shirts and recorded a total cost of $2,258 determined as follows: Required: Make the needed corrections in this calculation. Give the journal entry(ies) to record this...

Q:

An element of material subjected to plane strain (see figure) has strains as follows: (x = 220 ( 10-6, (y = 480 (10-6, and (xy = 180 ( 10-6. Calculate the strains for an element oriented at an angle...

Q:

The production records of Prince Company for the month of June shows the following: Total Manufacturing Cost Variance P 3,840 U Rate Variance 8,710 F Total material cost variance 2,975 U Total Labor...

Q:

Based on the facts, what is the primary ethical issue in this case? Who are the stakeholders? What changes could have been made to impact the outcome of this fraud? Research recent developments in...

Q:

MDM4U EXAM REVIEW 1. Consider the arrangement of the name TISHAN a. How many arrangements are there in total? b. How many begin with N? c. How many begin with a vowel? 2. Consider forming 7 digit...

Q:

A cake maker has determined that the cost of producing wedding cakes is $61.50 per wedding cake plus $16620 per month in fixed costs. The cake maker sells each wedding cake for $200. Step 4 of 4:...

Q:

Write a dialogue of what you would say to your sellers when presenting to them your marketing recommendations. 1- Give your recommendations based on maximum market (buyer) reach and appropriate...

Q:

(3) The change in price is $2 and (4) the average price is $4, so the percentage change in price equals ($2 $4) 100, which is 50 percent.

Q:

3M Company reports the following financial statement amounts in its 10-K report: a. Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. (Receivables turnover and...

Q:

Write the words for the ASCII codes given in Problems 3538. 72 65 86 69

Q:

As the controller of Take No Prisoners Perfume Company, you discover a misstatement that overstated net income in the prior year's financial statements. The misleading financial statements appear in...

Q:

As the controller of Take No Prisoners Perfume Company, you discover a misstatement that overstated net income in the prior year's financial statements. The misleading financial statements appear in...

Q:

Omega Transportation Inc., headquartered in Atlanta, Georgia, engaged in the following transactions: Billed customers $2,387,000 for transportation services Collected cash from customers in the...

Q:

D Question 10 1 pts Let sample space be all students in a College. First event be all freshmen from the college. n(E)= 900 ( No need to list who they are now) Second event be all girls from the...

Q:

For this question I also am having trouble finding and computing the lower and upper bound values Use the given statistics to complete parts (a) and (b) Assume that the populations are normally...

Q:

Subject - Financial Risk Management 1. Durant Fire Insurance has a retention limit of BD 100,000 and ceded the remaining BD 200,000 to Cury Fire Insurance Company. Considering the reinsurance...

Related Book

Intermediate Accounting 9th Canadian Edition, Volume 2 by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.