On November 30, ABC corporation borrows $79,000 from the bank by signing a 60 day, 8%...

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On November 30, ABC corporation borrows $79,000 from the bank by signing a 60 day, 8% note agreement. Round values to 2 decim

business accounting

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Answer 1

Answer #1

a)Computation of maturity date of the note:

From November 30 to January 28 is equal to 60 days

So maturity date is January 28

b) Computation of interest

Interest =Principal amount*interest rate *60/365

=$79000*8%*32/365

=$554.08

Journal entry:

Date Description debit. Credit

31/12. Interest expense account Dr $554.08

To Note payable account. $554.08

(Being interest accrued on note payable recorded upto 31/12)

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Answer 2

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On November 30, ABC corporation borrows $79,000 from the bank by signing a 60 day, 8%...

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