Wildhorse Co. borrows $87,600 on July 1 from the bank by signing a $87,600, 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	Debit	Credit
July 1	enter an account title to record the proceeds of the note on July 1	enter a debit amount	enter a credit amount
	enter an account title to record the proceeds of the note on July 1	enter a debit amount	enter a credit amount

(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	enter an account title to record the accrued interest on December 31	enter a debit amount	enter a credit amount
	enter an account title to record the accrued interest on December 31	enter a debit amount	enter a credit amount

Answer rating: 100% (QA)

Answer Entry a and b Date Accounts title ... View the full answer