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E10-3 On June 1, Marchon Company Ltd. borrows $60,000 from Acme Bank on a 6-month, $60,000, 8% note. The note matures on December 1. Prepare entries for interest-bearing notes. (LO 1), AP Instructions (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30. (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (d) What was the total financing cost (interest expense)?
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Date is Journal is Debit is Credit is 0 On June 1stThe Debit cast is $60,000 The Credit Notes Payable $60,000 On June 30th I Interest payable is = $60,000*8%*1/12 -$400 Debit interest payable 5400 On DecemberNotes payable is $60,000 C. 1st $60,000*8%*6/12 $2,400 Total interest payable Total amount is Cash is $2,400 $62,400 d. Overall interest and Expenses payable is $400 6 $2,400

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