Prepare the year-end adjusting entry

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Question - Lalapalooza Corporation issues a $600,000, 5%, 5-year note payable on January 1, 2021. The terms provide for semi-annual blended payments of $68,555 on July 1 and January 1.

Required -

a) Prepare the journal entries to record the note on January 1, 2021, and the first instalment payment.

b) Assuming Erving has a December 31 year end, prepare the 2021 year-end adjusting entry to account for accrued interest on the note payable. Round your answer to the nearest dollar.

c) Prepare partial balance sheet at December 31, 2021 for Lalapalooza Corporation displaying all amounts related to the note payable.

Reference no: EM132879884

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