On July 1, 2020, United Flag Company took out a 15-year loan for $144,000. Principal repayments of $9,600 and interest at 8% are due annually on June 30. Prepare all of the journal entries required in relation to the loan for the year ended October 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record the loan) (To record interest) (To reclassify the current
On July 1, 2020, United Flag Company took out a 15-year loan for $144,000. Principal repayments of $9,600 and interest at 8% are due annually on June 30. Prepare all of the journal entries required in relation to the loan for the year ended October 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit (To record the loan) (To record interest) (To reclassify the current
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2020, United Flag Company took out a 15-year loan for $144,000. Principal repayments of $9,600 and interest at 8% are
due annually on June 30.
Prepare all of the journal entries required in relation to the loan for the year ended October 31, 2020. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and
enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
(To record the loan)
(To record interest)
(To reclassify the current
portion of the loan)
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