Book nterest Payable silings Company takes out a 12%, 90-day, $105,000 loan with
ID: 2340663 • Letter: B
Question
Book nterest Payable silings 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 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 Assets Liabilities +Equity 105,000 oes Paya 10,500 Cash No Entry 2. 1dentify and analyze the adjustments for the month of March 2017 Actrvity How does this entry affect the accounting equation? lf a financial statement item s not affected, select "No Entry, and leave the amount box blank if the emet na financial statement ten s negative, Do not round intermediate calculations. If required, round your final answer to the nearest dollar Assets Liabilities Equity Identify and analyze the adjustments for the month of Apri 2017 Actnity now does this entry affect the accounting equation? statement themi.net affectedelecto ntry and lesve the amount bex biank I the offect on afnenciel stet 5more Check My Work uses remainingExplanation / Answer
2-
Activity
operating
Accounts
interest expense, interest payable
statements
Income statement and balance sheet
Balance sheet
income statement
Assets
=
Liabilities
+
shareholders equity
revenue
-
expenses
=
net income
no entry
0
Interest payable
1035.62
-1035.62
-1035.62
-1035.62
3-
Balance sheet
income statement
Assets
=
Liabilities
+
shareholders equity
revenue
-
expenses
=
net income
no entry
0
=
Interest payable
1035.62
-1035.62
-
-1035.62
=
-1035.62
cash
-108107
=
interest payable
-108107
+
0
0
-
0
=
0
monthly interest
105000*12%*30/365
1035.62
interest payable
1035.616*3
3107
2-
Activity
operating
Accounts
interest expense, interest payable
statements
Income statement and balance sheet
Balance sheet
income statement
Assets
=
Liabilities
+
shareholders equity
revenue
-
expenses
=
net income
no entry
0
Interest payable
1035.62
-1035.62
-1035.62
-1035.62
3-
Balance sheet
income statement
Assets
=
Liabilities
+
shareholders equity
revenue
-
expenses
=
net income
no entry
0
=
Interest payable
1035.62
-1035.62
-
-1035.62
=
-1035.62
cash
-108107
=
interest payable
-108107
+
0
0
-
0
=
0
monthly interest
105000*12%*30/365
1035.62
interest payable
1035.616*3
3107