Bramble Company borrowed $24,000 on November 1, 2017, by signing a $24,000, 10%,

Question

Bramble Company borrowed $24,000 on November 1, 2017, by signing a $24,000, 10%, 3-month note. Prepare Bramble’s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

2/1/18

Date

Account Titles and Explanation

Debit

Credit

11/1/1712/31/172/1/18

11/1/1712/31/172/1/18

2/1/18

Explanation / Answer

The entries will be prepared as follows:

Date Account Titles and Explanation Debit Credit 11/1/2017 Cash 24000       Notes Payable 24000 12/31/2017 Interest Epxnese (24,000 x 10% x 2/12) 400       Interest Payable 400 2/1/2018 Interest Expense (24,000 x 10% x 1/12) 200 Interest Payable 400 Notes Payable 24000       Cash 24600

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