Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $350,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 7%. B. On July 9, Mohammed borrows an additional $110,000 with payment due in four months from July 9, and an annual interest rate of 14%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 July 9 Oct. 10 Nov. 9 Accounts Payable Cash Interest Expense Merchandise Inventory Short-Term Notes Payable II II III III II II I1I 1II

Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $350,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 7%. B. On July 9, Mohammed borrows an additional $110,000 with payment due in four months from July 9, and an annual interest rate of 14%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 July 9 Oct. 10 Nov. 9 Accounts Payable Cash Interest Expense Merchandise Inventory Short-Term Notes Payable II II III III II II I1I 1II

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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