Current Attempt in Progress

Sheridan Company borrows $$91,200$ on July $1$ from the bank by signing a $$91,200,10\%,1-$year note payable.

$($a$)$

Prepare the journal entry to record the proceeds of the note. $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

July $1$

Debit

Credit

$($b$)$

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

Date Account Titles and Explanation

Debit

Credit

Dec. $31$