On June 1, Cullumber Company Ltd. borrows $72,000 from Acme Bank on a 6-month, $72,000, 4%...

On June 1, Cullumber Company Ltd. borrows $72,000 from Acme Bank on a 6-month, $72,000, 4% note. The note matures on December 1.

Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	enter an account title for the entry on June 1	enter a debit amount	enter a credit amount
	enter an account title for the entry on June 1	enter a debit amount	enter a credit amount

List of Accounts

Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	enter an account title for the adjusting entry on June 30	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on June 30	enter a debit amount	enter a credit amount

List of Accounts

Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 1	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount
	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount
	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount

Expert Solution

Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	Cash	72000
	Notes payable		72000

Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	Interest expense (720004%1/12)	240
	Interest payable		240

Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 1	Notes payable	72000
	Interest payable (240*6)	1440
	Cash		73440

ekkarill92 answered 2 years ago

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