Demir Financial Services loaned Sharp Inc. $100,000 cash in exchange for a one- year, 4% note on
Question:
Demir Financial Services loaned Sharp Inc. $100,000 cash in exchange for a one- year, 4% note on July 1, 2024. Interest is payable quarterly beginning on October 1, 2024. 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, 2024.
b. Prepare the adjusting journal entry for accrued interest on December 31, 2024.
c. Indicate what amounts will be reported on Demir’s December 31, 2024, balance sheet related to the note receivable.
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a b c Included in the current assets section of the balan...View the full answer
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Related Book For 
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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