Question

Brief Exercise 13-4 Sarasota Limited borrowed $45,000 on November 1, 2017, by signing a $45.000, three-month, 9% note. Prepare Sarasota's November 1, 2017 try; and the Februsry 1, 2018 entry, (Cresdit account titkes are automafically indented when the amount is entry; the December 31, 2017 annual adjyasting er usry 1, 2018 entry, (Credit account titles are automaticaly indented when the amount tered. Do not indent manually. If no entry is roguiresd, sefect "No Entry for the account titkes and enter o for the amounts Roumd aniswers ta Date Account Tidles and Explanation Debit eb. 1, 2058

Answer 1

13-4) Journal entries

Date	account and explanation	debit	credit
Nov 1	Cash	45000
	Notes payable		45000
	(To record borrow)
Dec 31	Interest expense (45000*9%*2/12)	675
	Interest payable		675
	(To record accrued interest)
Feb 1	Notes payable	45000
	Interest payable	675
	Interest expense (45000*9%*1/12)	338
	Cash		46013
	(To record amount paid)

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