Book nterest Payable bilings Company takes out a 12%, 90-day, $105,000 loan with

Question

Book nterest Payable bilings Company takes out a 12%, 90-day, $105,000 loan with First National Bank on March 1, 2017. Assume a 360-day year. Required: 1. Identify and analyze the transaction to take out the loan on March 1, 2017. Activity Operating Notes Statement(s) Balance Sheet only How does this entry affect the accounting equation? if a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative Balance Sheet +Equity Assets Liabilities 105,000 kes Pa 10:500 Cash Notes Payable No Entry 2. tdentfy and analyze the adjustments for the month of March 2017. Activity How does this entry affect the accounting equation? If a finanoial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative, ie, a Do not round intermediate calculations. If required, round your final answer to the nearest dollar Balance Sheet Assets Liabilities Equity Identify and analyze the adjustments for the month of Apri 2017 now does this entry affect the accounting equation? entry, hnd leave the "mount box blank, f tho effect on fneroni stat 5more Check My Work uses remaning

Explanation / Answer

Solution :

1. Analysis of transaction on march 1, 2017:

2. Analyze the adjustment for march 2017:

3. Analyze the adjustment for April 2017:

Activity Financing Accounts Cash increase, Notes Payable Increase Statement (s) Balance Sheet

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---