Question

Kingbird, Inc. borrows $64,800 on July 1 from the bank by signing a $64,800, 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 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. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31

Answer 1

1 2 (a) Journal Entry to record Proceeds 4. Date 5 July 1 Account Titles and Explanation Debit Credit Cash $ 64,800 To Note Payable $ 64,800 (Being Borrows1 year not payable interest rate @ 10 %/Per Year) 9 (b) Accrued Interest for 6 months(July 1st to Dec 31) O 11 Date 12 Dec 31 Account Titles and Explanation Debit Credit Interest $ 3,240 To Accrued Interest $ 3,240 (Being Accrued Inetrest for 6 months, interest rate @ 10 %/Per Year) w u