Question - Greener Pastures Corporation borrowed $1,750,000 on November 1, 2015. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2016. The note issued on November 1. The interest accrual on December 31.
1) Indicate the effects of the amounts for the above transactions.
2) Prepare the journal entries related for the above transactions.
a) Greener Pastures Corporation borrowed $1,750,000 on November 1, 2015. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2016. Record the borrowing of $1,750,000.
b) Greener Pastures Corporation borrowed $1,750,000 on November 1, 2015. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2016. Record the interest accrued on the notes payable.
3) Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31.
The issuance of these bonds on January 1.
The first interest payment on December 31.
a) Indicate the effects of the amounts for the above transactions.
Prepare the journal entries related for the above transactions.
b) Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. Record the issuance of 25,000 bonds at face value for $100 each.
c) Schlitterbahn Waterslide Company issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. Record the interest payment on December 31.