Question Details

Prepare journal entries for each of the transactions 



Ex. 1
On March 1, Jordan Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 8%, 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. 
(d)	Prepare the entry to record payment of the note at maturity.



Ex. 2
Wellington Company had the following transactions involving notes payable.

Nov. 1, 2011	Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.
Dec. 31, 2011	Prepares the adjusting entry.
Feb. 1, 2012	Pays principal and interest to Olathe State Bank.

Instructions
Prepare journal entries for each of the transactions .





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