on June 1, Merando Company borrows $121,500 from First Bank on a 6-month, $121,5

Question

on June 1, Merando Company borrows $121,500 from First Bank on a 6-month, $121,500, 8% note. se 10-16 Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 Score ve Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation June 30 Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 1 What was the total financing cost (interest expense)? cost

Explanation / Answer

(d) Total financing cost: $4860

Date Account Titles and Explanation Debit Credit (a) June 1 Cash 121500 Note payable 121500 (To record issue of note payable for loan) (b) June 30 Interest expense ($121500 x 8% x 1/12) 810 Interest payable 810 (To accrue interest on note payable) (c) Dec. 1 Note payable 121500 Interest payable 4860 Cash 126360 (To record repayment of note)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

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