Essay
On July 1, 2015, Clayton Shop borrowed $33,000 from the bank. Clayton signed a ten-month, 6% promissory note for the entire amount. Clayton uses a calendar year-end.
REQUIRED:
1. Identify the accounting equation effects for the July 1, 2015 transaction of issuing the promissory note.
2. Identify any adjustments needed at year-end.
3. Identify the accounting equation effects for the May 1, 2016 transaction to record the payment of principal and interest.
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2.
Dec. 31 To record int...View Answer
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Correct Answer:
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2.Dec. 31 To record int...
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