Brief Exercise 10-2 Ivanhoe Company borrows $91,200 on July 1 from the bank by s

Question

Brief Exercise 10-2 Ivanhoe Company borrows $91,200 on July 1 from the bank by signing a $91,200, 796, 1-year note payable. Prepare the journal entry to record the proceeds of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Prepare the journal entry to record the accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec. 31 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS

Explanation / Answer

Date General Journal Debit Credit (a) July 1 Cash $91,200 Notes payable $91,200 (b) Dec. 31 Interest expense($91,200 * 7% * 6/12) $3,192 Interest payable $3,192

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