On November 15, 2022, Trumpet Company borrowed $ 30,000 from Key Bank by assuming a 60-day non-interest-bearing
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On November 15, 2022, Trumpet Company borrowed $ 30,000 from Key Bank by assuming a 60-day non-interest-bearing note. The bank discounted this note at 10% and remitted the difference to Trumpet. Assume ordinary interest (360 days) and each month at 30 days.
Prepare the journal entries to record the initial loan, the year-end adjusting entry, and the payment of the note at maturity.
Related Book For
Accounting Introduction To Financial Accounting
ISBN: 9781517089719
1st Edition
Authors: Henry Dauderis, David Annand
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