Brief Exercise 10-2 Sandhill Co. borrows $73,200 on July 1 from the bank by sign

Question

Brief Exercise 10-2 Sandhill Co. borrows $73,200 on July 1 from the bank by signing a $73,200, 10%, 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 uly 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 SHOW LIST OF ACCOUNTS

Explanation / Answer

Jul-01 Cash 73200       Notes payable 73200 Dec-31 Interest expense 3660 =73200*10%/12*6       Interest payable 3660

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