On March 1, Jordan Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note

Accounting Mar 09, 2021

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.

(d) Prepare the entry to record payment of the note at maturity.

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