Record the issuance of the note for interest expense

Reference no: EM131521497

Question: 1. On November 1, Bahama Cruise Lines borrows $3 million and issues a sixmonth, 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.

2. On November 1, Bahama National Bank lends $3 million and accepts a sixmonth, 6% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period.

Reference no: EM131521497

Questions Cloud

Does the career you want pay a salary that meets your needs : Does the career you want pay a salary that meets your needs? Will it offer you opportunities to advance? Are you comfortable sitting at a desk all day?

Explain differences among working capital and current ratio : Current liabilities affect a company's liquidity. What is liquidity, and how do we evaluate it?

What is phishing : (a) What is Phishing? (Focus on phishing emails and targeted attacks that include spear phishing and whaling.)

Designing databases with visio professional : If you're using Visio, see "Appendix A: Designing Databases with Visio Professional 2010: A Tutorial" to help you complete Section 1

Record the issuance of the note for interest expense : On November 1, Bahama Cruise Lines borrows $3 million and issues a sixmonth, 6% note payable. Interest is payable at maturity.

Why are businesses experiencing a digital transformation : Why are businesses experiencing a digital transformation?Why are enterprises adopting cloud computing?

Determine a triage scheme for your company : What sort of risk management criteria would you use to determine a "triage scheme" for your company?

What is the amount of interest expense : On July 1, Alaskan Adventures issues a $100,000, eight-month, 6% note. Interest is payable at maturity. What is the amount of interest expense that the company.

Why is a good understanding of the various ratios used : Why is a good understanding of the various ratios used by accountants and managers important to the controlling function? Give specific examples.

User Account

All Pages