t/mainfr.uni WileyPLUS: MyWileyPLuS I Helo I Contact Us I Los Weygandt, Financia

ID: 2519073 • Letter: T

Question

t/mainfr.uni WileyPLUS: MyWileyPLuS I Helo I Contact Us I Los Weygandt, Financial Accounting, 10e FINANCIAL ACCOUNTING (Acc 2 Assignment Gradebook ORION Downloadable eTextbook ent CALCULATOR MESSAGE MY INSTRUCTORFULL SCREEN PRINTER VERSION BACK NEXT Additional Exercise 262 On March 1, Jordan Company borrows $240,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note. Prepare the necessary entries below associated with the note payable on the books of Jordan Company. Prepare the entry on March 1 when the note was issued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit March 1 Cash 240000 Notes Payable 240 Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit June 30 0 12-23 PM 4/12/201

Explanation / Answer

Answer

The $9,600 interest has been debited to Interest expense and credited to interest payable by you on 30 June and Aug 31 as $6,400 and $3,200

Date

Accounts Titles

Debit

Credit

Sep-01

Notes Payable

$240,000

Interest payable

$9,600

Cash

$249,600

(notes payable repaid along with interest)