Essay
On December 31,2015,Newco borrowed $100,000 from First National Bank,and signed a 12% note payable due in two years.Interest on the note is due at maturity.
Required:
Part a.Prepare the journal entry to record the borrowing transaction.
Part b.Describe how the note should be reported on Newco's classified balance sheets at December 31,2015 and December 31,2016.
Part c.Prepare the required adjusting entry on December 31,2016.
Part d.Prepare the journal entry to record the payment of the interest on December 31,2017.
Part e.Prepare the journal entry to record the payment of the note on December 31,2017.
Correct Answer:
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Part a
Part b
The note should be clas...View Answer
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Correct Answer:
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Part b
The note should be clas...
View Answer
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