Question

Swifty Corporation borrows $63.600 on July 1 from the bank by signing a S63.600, 6%, 1-year note payable (a) Prepare the journal entry to record the proceeds of the note. (Credit occount titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit July 1 (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. C manually) Credit Date Account Titles and Explanation Debit Dec. 31

Answer 1

Journal entry to record the notes payable :

Bank A/c ....Dr 63,600

To notes payable 63,600

Journal entry to record accrued interest :

Interest Expense A/c ..... Dr 1908

To interest payable 1908

[63600*6%*(6/12 months)]

According to HOMEWORKLIB RULES where there are multiple questions only first question is to be answered so the second question is not answered by the expert