Essay
On November 1,2009,Bob's Skateboards Store signed a $12,000,3-month,5% note payable to cover a past due account payable.
a. What amount of interest expense on this note should Bob's Skateboards Store report?
b. Prepare Bob's general journal entry to record the issuance of the note payable
c. Prepare Bob's general journal entry to record the payment of the note on February 1, 2010.
Correct Answer:
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a.Interest expense = $12,000 x 0.05 x 2/...View Answer
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