Ask Question
8 April, 16:32

On November 1, 2018, Aviation Training Corp. borrows $49,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation's year-end is December 31. Required: 1., 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

+4
Answers (1)
  1. 8 April, 16:59
    0
    1. Issuance of note

    Cash A/c Dr. $49,000

    To note payable $49,000

    2. Adjustment for interest

    Interest expense ($49,000 * 6% * 2/12) Dr. $490

    To interest payable $490

    3. Repayment of note

    Note payable A/c Dr. $49,000

    Interest payable A/c Dr. $490

    Interest expense A/c ($49,000*6%*1/12) Dr. $245

    To cash $49,735
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On November 1, 2018, Aviation Training Corp. borrows $49,000 cash from Community Savings and Loan. Aviation Training signs a three-month, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers