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ni a Search the web ann University OnxyDCh. 13 homework ×\\ ezto.mheducation.com

ID: 341550 • Letter: N

Question

ni a Search the web ann University OnxyDCh. 13 homework × ezto.mheducation.com/hm.tpx?0.9185802910398743-1520280698913 value 5.00 points On October 1, Eder Fabrication borrowed $62 million and issued a nine-month, 11% promissory note Interest was payable at maturity Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 2 Record the issuance of the note. Note: Enter debits before credits. Event General Journal Debit Credit e here to search

Explanation / Answer

Issuance Of Note

Bank A/c Dr  62 million

To 11% Notes A/c 62 million

(Being 11% notes issued payable after nine months)

Adjusting Entry

Interest A/c Dr 1,705,000

To Accrued Interest A/c 1,705,000

(Being adjusting entry made for Interest expense accrued but not due)

Note: It has been assumed that Books of Accounts are closed on 31st December every year.