Demir Financial Services loaned Sharp Inc. $100,000 cash in exchange for a oneyear, 4% note on July
Question:
Demir Financial Services loaned Sharp Inc. $100,000 cash in exchange for a oneyear, 4% note on July 1, 2021. Interest is payable quarterly beginning on October 1, 2021. Demir has a December 31 year end and records adjusting entries annually.
a. Record Demir’s entries related to the note on July 1 and October 1, 2021.
b. Prepare the adjusting journal entry for accrued interest on December 31, 2021.
c. Indicate what amounts will be reported on Demir’s December 31, 2021, balance sheet related to the note receivable.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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a 2021 July 1 Notes Receivable100000 Cash 100000 L...View the full answer
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Related Book For 
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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