On June 1, Crane company borrows $99,000 from Acme Bank on a 6-month, $99,000, 8

Question

On June 1, Crane company borrows $99,000 from Acme Bank on a 6-month, $99,000, 8% note. the note matures on December 1st.
Prepare the entries for June 1st, June 30th, and the entry at maturity on December 1.
What is the total interest expense? On June 1, Crane company borrows $99,000 from Acme Bank on a 6-month, $99,000, 8% note. the note matures on December 1st.
Prepare the entries for June 1st, June 30th, and the entry at maturity on December 1.
What is the total interest expense?
Prepare the entries for June 1st, June 30th, and the entry at maturity on December 1.
What is the total interest expense?

Explanation / Answer

JOurnal entry :

Interest expense = 99000*8%*6/12 = 3960

Date accounts & explanation debit credit June 1 Cash 99000     Notes payable 99000 (To record amount borrow) June 30 Interest expense (99000*8%*1/12) 660     Interest payable 660 (To record accured interest) Dec 1 Notes payable 99000 Interest payable (660*6) 3960     Cash 102960 (To record amount repaid)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.