Accounting Discussion
On October 1, 2016, Tankard Company borrowed $45,000 from the bank by issuing a one year 8% interest bearing note.
a) Prepare the journal entry to record the issuance of the note.
b) Compute the amount of interest expense that will be shown on the 2016 income statement.
c) What is the total amount of cash that will be paid to the bank at the maturity of the note on October 1, 2017?
d) Prepare the liabilities section of the balance sheet at December 31, 2016.