hapter 10 Quiz C O ezto.mheducation.com/hm.tpx M10-6 Recording a Note Payable [L

Question

hapter 10 Quiz C O ezto.mheducation.com/hm.tpx M10-6 Recording a Note Payable [LO 10-2] The following information applies to the questions displayed below Greener Pastures Corporation borrowed $1100,000 on November 1. 2015. The note corried a 9 percent Interest rate with the principal and Interest payable on June 1, 2016. (a) The note issued on November 1 (b) The Interest accrual on December 31 References Section Break M10-6 Payable (Lo 10- 0.71 points M10-6 Part 2 2. 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.) Type here to search

Explanation / Answer

Ans. No. Date General journal Debit Credit 1 1-Nov-15 Cash 1100000 Notes payable 1100000 2 31-Dec-15 Interest expenses 16500 Interest payable 16500 *Accrued interest       =    1100000 * 9% * 2/12 It is calculated for 2 months (1 Nov. - 31 Dec.)

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