Financial Act Demonsration Problem #1

The note is for two years at 8 annual interest 1 2 3

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Unformatted text preview: ction: Purchases leasehold improvements by signing a long term note. (borrows $$) Rules: Increases to assets are debited, increases to liability accounts are credited. This is a long term liability (note is for 2 years) so account would correctly be classified as a "note payable", and considered a long term liability. Journal entry: Debit to Leasehold Improvements, Credit to Notes Payable Dr. Jan 7 Leasehold Imp. Notes Payable 4. Cr. 3,000 3,000 Post to the general ledger: Leasehold Imp Notes Payable 1/7 3,000 1/7 3,000 January 25: Paid for office supplies that were purchased on 1/6. 1. 2. 3. Transaction: Paying debt that is owed in cash. Accounts p...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.

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