M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1Skip to question[The following information applies to the questions displayed below.] Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1.(b) The interest accrual on December 31. 1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equitywith a minus sign. Do not round intermediate calculations.)AssetsLiabilitiesStockholders' Equity(a)CashO 1,250,000 O =Notes Payable (long-term)X 1,250,000 +(b)Interest Expense18,750 O+Interest PayableO (18,750)

Since basic accounts equal is Assets = Liabilities + Owners equity

Answered: Greener Pastures Corporation borrowed…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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M10-6 (Algo) Recording Notes Payable [LO 10-2] Part 1

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[The following information applies to the questions displayed below.]

Greener Pastures Corporation borrowed $1,250,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022.

(a) The note issued on November 1.
(b) The interest accrual on December 31.

1. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity
with a minus sign. Do not round intermediate calculations.)
Assets
Liabilities
Stockholders' Equity
(a)
Cash
O 1,250,000 O =
Notes Payable (long-term)
X 1,250,000 +
(b)
Interest Expense
18,750 O+
Interest Payable
O (18,750)

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