Question - On March 1, Barkley Company borrows $180,000 from Ontario State Bank by signing a 6-month, 10%, interest-bearing note.
Instructions - Prepare the necessary entries below associated with the note payable on the books of Jordan Company.
(a) Prepare the entry on March 1 when the note was issued.
(b) Prepare any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the adjusting entry at August 31 to accrue interest.