Course NUT4553101 MxCh10HW xC Accounting question Ch x Cezt

Course: NUT4553-101 MxCh10HW xC Accounting question | Ch x Cezto.mheducation.com/hm.tpx Nicole thinks that her business, Nicole\'s Getaway Spa (NGS), is doing really well and she is planning a large expansion. With such a large expansion, Nicole will need to finance some of it using debt She signed a one-year note payable with the bank for S45,000 with a 6 percent interest rate. The note was issued October 1, 2014 interest is payable semiannually and the end of Nicole\'s accounting period is December 31 Required: Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2015 assuming that no entries are made other than at the end of the accounting period, when interest is payable, and when the note reaches its maturity. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the borrowing of $45,000 Note: Enter debits before credits. Date General Journal Credit October 01, 2014 Record entry Clear entry View general journal O Type here to search S:54 PM 7/9/2018

Solution

Journal entry :

Date	account & explanation	debit	creidt
Oct 1,2014	Cash	45000
	Notes payable		45000
	(To record borrowing)
Dec 31,2014	Interest expense (45000*6%*3/12)	675
	Interest payable		675
	(To record accured interest)
Mar 31,2015	Interest payable	675
	Interest expense	675
	Cash		1350
	(To record interest paid)
Sep 30,2015	Interest expense	1350
	Cash		1350
	(To record interest paid)
Sep 30,2015	Notes payable	45000
	Cash		45000
	(To record notes repaid)