QS 9-4 Interest-bearing note transactions LO P1 On November 7, 2015, Mura Compan

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QS 9-4 Interest-bearing note transactions LO P1 On November 7, 2015, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (Use 360 days a year. Do not round your intermediate calculations.) 1. Compute the accrued interest payable on December 31, 2015. Principal x Rate (%) x Time Interest Total through maturity Year end interest accrual Interest recognized February 5 2. &3. Prepare the jounal entry to record the accrued interest expense at December 31, 2015 and payment of the note at maturity View transaction list

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Solution 6:

Cash       a/c          Dr                         6,300       To Sale                        6,000       To Sale tax payable                            300 (Being sale recorded) Sales Tax payable    Dr                            300       To Cash                            300 (Being sale tax paid to Govt)

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