Process of Journalizing
Question # 00047815
Posted By:
Updated on: 02/10/2015 03:03 PM Due on: 02/12/2015
The process of journalizing transactions requires an understanding of an journal. While companies can use various journals, every company uses a general journal. It can be used to record any transaction and includes the following information about each transaction:
Include in journal
1. date of transaction
2. titles of affected accounts
3. dollar amount of each debit and credit
4. explanation of the transaction
Problem:
On November 1, 2013, ABC Company borrowed $200,000 for 90 days at 9% interest by signing a note. Assume that the face value of the note equals the principal of the loan. Prepare three general journal entries to record issuing the note, accrual of interest at the end of 2013 and the payment of the note at maturity.
Include in journal
1. date of transaction
2. titles of affected accounts
3. dollar amount of each debit and credit
4. explanation of the transaction
Problem:
On November 1, 2013, ABC Company borrowed $200,000 for 90 days at 9% interest by signing a note. Assume that the face value of the note equals the principal of the loan. Prepare three general journal entries to record issuing the note, accrual of interest at the end of 2013 and the payment of the note at maturity.
-
Rating:
/5
Solution: Process of Journalizing