On August 31, 2018, BetsyTotten borrowed $1,000 from Iowa State Bank. Totten signed a note payable, promising to paythe bank principal plus interest on August 31, 2019. The interest rate on the note is 6%. Theaccounting year of Iowa State Bank ends on June 30, 2019. Journalize Iowa State Bank’s (a)lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019,and (c) collection of principal and interest at August 31, 2019, the maturity date of the note.
On August 31, 2018, BetsyTotten borrowed $1,000 from Iowa State Bank. Totten signed a note payable, promising to paythe bank principal plus interest on August 31, 2019. The interest rate on the note is 6%. Theaccounting year of Iowa State Bank ends on June 30, 2019. Journalize Iowa State Bank’s (a)lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019,and (c) collection of principal and interest at August 31, 2019, the maturity date of the note.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Question
On August 31, 2018, Betsy
Totten borrowed $1,000 from Iowa State Bank. Totten signed a note payable, promising to pay
the bank principal plus interest on August 31, 2019. The interest rate on the note is 6%. The
accounting year of Iowa State Bank ends on June 30, 2019. Journalize Iowa State Bank’s (a)
lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019,
and (c) collection of principal and interest at August 31, 2019, the maturity date of the note.
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