Maurice Tutor

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Category > Management Posted 11 Feb 2018 My Price 5.00

payment of principal

Exercise 9-7 Notes Payable and Interest

On July 1, 2014, Jo’s Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo’s uses a calendar year-end.

Required

1.        Prepare the journal entry on July 1 to record the issuance of the promissory note.

2.        Prepare any adjusting entries needed at year-end.

3.        Prepare the journal entry on May 1 to record the payment of principal and interest.

 

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Maurice Tutor
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Status NEW Posted 11 Feb 2018 12:02 AM My Price 5.00

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