Reference no: EM133162167

Question - The following information pertains to Geo Ltd. In 2020 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $12,900 that they planned to use to purchase new office equipment, the interest rate on the note was 6% with both interest and principal repayable in 6 months (December 315'). On October 15', the company financed the purchase of a used vehicle costing $68,500 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at maturity. The company's year-end is December 31. Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December 31, 2020. Assume that no interest expense was accrued during the year.