Cullumber Company borrows $73,200 from the bank on July 1 by signing a note payable for $73,200, 9%, for 1 year.

(a) Prepare the journal entry to record the receipts for the promissory note. (Credit account titles are automatically indented when the amount is entered. Do not manually indent.)

(b) Prepare the journal entry to record interest accrued as of December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when the amount is entered. Do not manually indent.)

Answer rating: 100% (QA)

Answer Date July I Dec31 Journal Entries Account Title Cash Motes Pa... View the full answer