Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must make payments of principal and interest every 3 months, beginning December 31, 2024. The note will be fully paid at maturity on Decembet 31, 2024. The company's fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020. Prepare the Journal Entry on March 31, 2020 1/1/20 Cash 160,000 Long Term Note Payable 160,000 3/1/20 Interest Expense ?? Long Term Note Payable ?? Cash ??
Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must make payments of principal and interest every 3 months, beginning December 31, 2024. The note will be fully paid at maturity on Decembet 31, 2024. The company's fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020. Prepare the Journal Entry on March 31, 2020 1/1/20 Cash 160,000 Long Term Note Payable 160,000 3/1/20 Interest Expense ?? Long Term Note Payable ?? Cash ??
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must make payments of principal and interest every 3 months, beginning December 31, 2024. The note will be fully paid at maturity on Decembet 31, 2024. The company's fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020. Prepare the Journal Entry on March 31, 2020
1/1/20
Cash 160,000
Long Term Note Payable 160,000
3/1/20
Interest Expense ??
Long Term Note Payable ??
Cash ??
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