Greener Pastures Corporation borrowed $1,100,000 on November 1, 2015. The note c

Question

Greener Pastures Corporation borrowed $1,100,000 on November 1, 2015. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2016. (o) The note issued on November 1 b) The interest accrual on December 31 velue: 2.00 points for the above transactions. (If no entry is required for a "No Journal Entry Required in the first account field. Do not round intermediate calculations.) View transaction ist Journal entry worksheet Greener Pastures Corporation borrowed $1.100.000 on November 1. 2015. The note carried a 9 percent nterest rate with the principal and interest payable on June 1. 2016. Record the borrowing of 1.100.000. Date Debit Credit

Explanation / Answer

Date General Journal Debit Credit November 01, 2015 Cash 1,100,000 Notes Payable 1,100,000 To record 9% interest bearing borrowing. December 31, 2015 Interest Expense 16,500 Interest payable 16,500 ($1100000 X9% X(2/12)) To record accrued interest on note at year end

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