Problem

Accounting for a note payable [10 min] On December 31, 2012, Edgmont, Co., purchased $10,0...

Accounting for a note payable [10 min] 

On December 31, 2012, Edgmont, Co., purchased $10,000 of inventory on a one- year, 10% note payable. Edgmont uses a perpetual inventory system.

Requirements

1. Journalize the company’s accrual of interest expense on June 30, 2013, its fiscal year-end.


2. Journalize the company’s payment of the note plus interest on December 31, 2013.

Step-by-Step Solution

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Solutions For Problems in Chapter 10