Intermediate Accounting II

Intermediate Accounting II - Prepare the journal entry for...

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Question 1 Needs Grading On September  1, 2011, Triton  Entertainment  borrowed $24  million cash to  fund a new  Fun Park. The  loan was  made by  Nevada Bank  under a  noncommitted  short-term line  of credit  arrangement.  Triton issued a  9-month, 12%  promissory  note. Interest  was payable  at maturity.  Triton's fiscal  period is the  calendar year.  Required a. Prepare  the journal  entry for  the  issuance  of the note  by Triton. 
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b. Prepare  the  appropriat e adjusting  entry for  the note by  Triton on  December  31, 2011.  c.
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Unformatted text preview: Prepare the journal entry for the payment of the note at maturity. Problem #1: a., b & c. General Journal Date Account Dr Cr A. Cash 24,000,000 Notes Payable 24,000,000 B. Interest Expense ($24,000,000 X 12% X 4/12) 960,000 Interest Payable 96,000 C. Interest Expense ($24,000 X 12% X 5/12) 1,200,000 Interest Payable (from adjusting entry) 960,000 Notes Payable (face amount) 24,000,000 Cash (total) 26,160,000...
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Intermediate Accounting II - Prepare the journal entry for...

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