Greener Pastures Corporation borrowed $1,800,000 on November 1, 2018. The note carried a 8 percent interest...
Greener Pastures Corporation borrowed $1,800,000 on November 1, 2018. The note carried a 8 percent interest rate with the principal and interest payable on June 1, 2019.
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(a) The note issued on November 1.
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(b) The interest accrual on December 31.
M10-6 Part 1
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Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Do not round intermediate calculations.)
Homework Answers
Solution:
| Date | Assets | = | Liabilities | + | Stockholder's equity | ||
| Cash | Notes Payable | + | Interest payable | Retained Earnings | |||
| 1-Nov | $1,800,000.00 | = | $1,800,000.00 | + | $0.00 | + | $0.00 |
| 31-Dec | $0.00 | = | $0.00 | + | $24,000.00 | + | -$24,000.00 |
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Greener Pastures Corporation borrowed $1,800,000 on November 1,
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