Brief Exercise 10-2 Your answer is partially correct. Try again. Blossom Company

Question

Brief Exercise 10-2 Your answer is partially correct. Try again. Blossom Company borrows $60,000 on July 1 from the bank by signing a $60,000, 6%, 1-year note payable. (a) 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.) Debit Credit Date Account Titles and Explanation July 1 Cash 60000 Notes Payable T 60000 (b) 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.) Debit Credit Date Account Titles and Explanation Dec. 31 Interest Expense Interest Payable D E 18000 100 L 18000 Interest Payable 18000

Explanation / Answer

SOLUTION

Date Account titles and Explanation Debit ($) Credit ($) July 1 Cash 60,000 Notes payable 60,000 (To record the proceeds of the note) Dec.31 Interest Expense ($60,000 * 6% * 6/12) 1,800 Interest Payable 1,800 (To record accrued interest)

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.