Question

Graves Company borrows $90,000 on July 1 from the bank by signing a $90,000, 7%, 1-year note payable.

Prepare the journal entries to record the proceeds of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

July 1

Prepare the journal entries to record the accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Round to 0 decimal places, e.g. 62. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Decmber 31

Answer 1

Answer

The answer and procedures of the exercise are attached inthe following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.