Question
Corporation borrowed $1,950,000 on November 1, 2015. The notecarried a 9 percent interest rate with the principal and interestpayable on June 1, 2016.
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The note issued on November 1. |
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The interest accrual on December 31. |
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Stockholders’ Equity |
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(b) |
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2.
Prepare the journal entries related for the abovetransactions:
a. Greener Pastures Corporation borrowed $1,950,000 on November1, 2015. The note carried a 9 percent interest rate with theprincipal and interest payable on June 1, 2016. Record theborrowing of $1,950,000 (for November 1st)
b. Greener Pastures Corporation borrowed $1,950,000 on November1, 2015. The note carried a 9 percent interest rate with theprincipal and interest payable on June 1, 2016. Record the interestaccrued on the notes payable. (for December 31st)
