Course: BUS 205, Inter VMcGraw-Hill Education x y M Ch 13 Part 2 HW × ezto.mhedu

Question

Course: BUS 205, Inter VMcGraw-Hill Education x y M Ch 13 Part 2 HW × ezto.mheducation.com/hm.tpx AppsGetting Started Imported From IE Imported From Fire Domain Manager Chea value: 20.00 points Brief Exercise 13-2 Non-interestbearing note; accrued interest [LO13-2] Oons Oistobunfed fdar Fabrication borrowed $7'6 millon and issued a nine-month promissory note. Interest Prepare the jounal 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 list Journal entry worksheet Record the issuance of the note. Event General Journal DebitCredit

Explanation / Answer

CALCULATION OF INTEREST ON NOTE AS ON DECEMBER 31 Note Amount = $         7,60,00,000 Interest Rate = 12% Interes rate for 9 Month = 9% Interes rate for Per month = 1% Date of issusance of note = Óctober - 01 Interest upto December 31 is e month and 3% $            22,80,000 ($ 76,000,000 X 3%) Journal Entries Date Account Title and explanation Debit Credit Oct, 01 Cash Account $         7,60,00,000             To 12% Note $           7,60,00,000 (To Record the 12% note issuance) Dec, 31 Interest Expenses $            22,80,000       Interest Payable $               22,80,000 (To Record the interest payable for the Dec - 31)

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