On November 1, 2022 Fashions Inc. borrowed $60,000 from RBC on a five-month, 6% note payable. The
Question:
On November 1, 2022 Fashions Inc. borrowed $60,000 from RBC on a five-month, 6% note payable. The principal and interest are payable at maturity (April 1) and Fashions Inc. prepares its financial statements including any adjusting entries annually at December 31.
Required (Answer this question in the space provided below each question, showing all necessary computations):
1) Write the journal entry required by Fashions Inc. on November 1. (4 marks)
| Date | Account titles | Debit | Credit |
2) Write the journal entry required by Fashions Inc. on December 31. (4 marks)
| Date | Account titles | Debit | Credit |
3) Write the journal entry required by Fashions Inc. on the maturity date. (6 marks)
| Date | Account titles | Debit | Credit |
4)Write the current liabilities section of Fashion's balance sheet on December 31, showing the relevant accounts and amounts to be reported. (6 marks)
| Current Liabilities: | $ |
Expert Answer:
Answer 1 Journal entry required by Fashions Inc on November 1 DateAccount titlesDebitCredit N... View the full answer
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
