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Unformatted text preview: allocated to each month based on the "rule of 78." 31-Oct Campus paid the note and accrued interest resulting from the October 1 transaction. 1-Nov Borrowed $75,000 cash from a local bank by issuing a 2-year, 6% promissory note. The interest is to be calculated based on actual days, using a 365-day year assumption. 1-Dec Campus paid the note and accrued interest resulting from the June 1 transaction. (a) Prepare journal entries necessary to record the above transactions. (b) Prepare year-end adjusting journal entries pertinent to the above borrowing transactions....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11