Question

Tamarisk, Inc. borrows $67,200 on July 1 from the bank by signing a $67,200, 8%, 1-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

journal entry are given below

Step-by-step explanation:

given data

borrows = $67,200

rate = 8 %

time = 1 year

to find out

Prepare the journal entry to record the proceeds of the note

solution

journal entry are as on July 1 and December 31

date title debit credit

July 1 cash 67200

note payable 67200

December 31 interest expense 2688

interest payable 2688

( interest = 6700 × 8% ×
`(6)/(12)` )