Use the information in RE3-6,
(a) Assuming Ringo Company makes reversing entries, prepare the reversing entry on January 1, 2017, and the journal entry to record the payment of the note on April 1, 2017; and
(b) Assuming Ringo does not make reversing entries; prepare the journal entry to record the payment of the note on April 1, 2017.
In RE3-6
On April 1, 2016, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12- month note, with the interest to be paid on the maturity date. Prepare journal entries to record the issuance of the note and the related year-end adjusting entry.