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Week 4 Ind RICARDO MENDOZA - E11-1 Jill Loomis believes a...

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E11-1 Jill Loomis believes a current liability is a debt that can be explained to be paid in one year. Is Jill c Explain. Yes, Current liabilities are due within either one year or the normal operating cycle of the business 2. Frederickson Company obtains $40,000 in cash by signing a 9%, 6-month, $40,000 note payable to First Bank on July 1. Frederickson’s fiscal year ends on September 30.What information should be reported for the note payable in the annual financial statements? The company will report the current liabilities which will be included notes payable and interest pa The company also will report interest expense under other expenses and losses in the income statem 40,000 x 9% x 3/12 = 900 Date Description Debit Credit Sept. 30 Interest expense 900 interest payable 900 E11-2 On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note. Instructions (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30.
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