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Question - On 1 February 2013, Jude Ltd borrowed $30,000 cash on a 180-day (fixed), 20% interest- bearing bill payable. The interest is payable with the principal at the maturity date of the bill. Jude Ltd has an annual accounting period that ends on 31 March each year.
Required -
(i) Determine the maturity date for the bill payable.
(ii) Prepare the adjusting journal entry that has to be made on 31 March 2013 with regards to the interest on the bill payable.
(iii) Show the journal entries to be made on the maturity date of the bill payable when the bill is paid off. [Assume no reversal entries were made on 1 April 2013.]
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