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heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31. Prepare Sheridan’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

heridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31. Prepare Sheridan’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sheridan, Inc. issued a $125,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2020, and received $125,000 cash. The note requires annual interest payments each December 31.

Prepare Sheridan’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Date Account Titles and Explanation Debit Credit
(a)

 

 

 


(b)

 

 

 

 

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