Question

CurrentAttemptinrrogress Cullumber Company borrowed $27,600 on November 1, 2020, by signing a $27,600, 9% , 3-month note. Prepare Cullumber's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter 0for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Debit Credit Account Titles and Explanation Date

Answer 1

Date	Account Title	Debit	Credit
Nov 1 2020	Cash	$27,600
	Note Payable		$27,600
	(To record amount borrowed)
Dec 31, 2020	Interest Expense	$414		[($27600 x 9%)/12 x 2]
	Interest Payable		$414
	(To record accrual of interest expense)
Feb 1, 2021	Interest Expense	$207		[($27600 x 9%)/12 x 1]
	Interest Payable	$414
	Note Payable	$27,600
	Cash		$28,221
	(To record payment of note payable and interest)