Problem regarding the notes payable and interest

Assignment Help Accounting Basics

Reference no: EM13953224

Notes Payable and Interest

On July 1, 2014, Jo's Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end.

Required

1. Prepare the journal entry on July 1 to record the issuance of the promissory note.

2. Prepare any adjusting entries needed at year-end.

3. Prepare the journal entry on May 1 to record the payment of principal and interest.

Reference no: EM13953224

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