On November 7, 2018, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with
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On November 7, 2018, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000.
(1) Compute the accrued interest payable on December 31, 2018;
(2) Prepare the journal entry to record the accrued interest expense at December 31, 2018;
(3) Prepare the journal entry to record payment of the note at maturity.
Face ValueFace value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
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