E11-2 Assignment - made through November 30(d What was the...

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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. (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been
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Unformatted text preview: made through November 30. (d) What was the total financing cost (interest expense)? Solution (a) June 1 Cash 90,000 Notes Payable 90,000 (b) June 30 Interest Expense 900 Interest Payable 900 (c) Dec. 1 Notes Payable 90,000 Interest Payable 5,400 Cash 95,400 (d) 5,400...
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