Greener Pastures Corporation borrowed $1,750,000 on November 1, 2015. The note c
ID: 2464971 • Letter: G
Question
Greener Pastures Corporation borrowed $1,750,000 on November 1, 2015. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2016.
The interest accrual on December 31.
Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations.)
Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations.)
Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
(a) The note issued on November 1. (b)The interest accrual on December 31.
Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations.)
Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Indicate the effects of the amounts for the above transactions. (Enter any decreases to account balances with a minus sign. Do not round intermediate calculations.)
Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Explanation / Answer
Amount Borrowed 1750000 12% Nov-01 Cash A/c Dr 1750000 To Loan 1750000 Interest 1750000*12%*7/12 122500 Interest Expense Dr 122500 To Cash 122500
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