The following note transactions occurred during the year for Towne Company: Nov. 25 Towne issued a 90-day, nine percent note payable for $8,000 to Hyatt Company for merchandise. Dec. 7 Towne signed a 120-day, $30,000 note at the bank at ten percent. Dec . 22 Towne gave Barr, Inc., a $12,000, four percent, 60-day note in payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit Dec.31 To accrue interest expense for note issued on Nov. 25. Dec.31 To accrue interest expense for note signed on Dec. 7. Dec.31 To accrue interest expense for note on Dec. 22.
The following note transactions occurred during the year for Towne Company: Nov. 25 Towne issued a 90-day, nine percent note payable for $8,000 to Hyatt Company for merchandise. Dec. 7 Towne signed a 120-day, $30,000 note at the bank at ten percent. Dec . 22 Towne gave Barr, Inc., a $12,000, four percent, 60-day note in payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit Dec.31 To accrue interest expense for note issued on Nov. 25. Dec.31 To accrue interest expense for note signed on Dec. 7. Dec.31 To accrue interest expense for note on Dec. 22.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following note transactions occurred during the year for Towne Company:
| Nov. | 25 | Towne issued a 90-day, nine percent note payable for $8,000 to Hyatt Company for merchandise. |
| Dec. | 7 | Towne signed a 120-day, $30,000 note at the bank at ten percent. |
| Dec . | 22 | Towne gave Barr, Inc., a $12,000, four percent, 60-day note in payment of account. |
Prepare the general
Use 360 days for calculations and round to the nearest dollar.
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| Dec.31 | |||
| To accrue interest expense for note issued on Nov. 25. | |||
| Dec.31 | |||
| To accrue interest expense for note signed on Dec. 7. | |||
| Dec.31 | |||
| To accrue interest expense for note on Dec. 22. |
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