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Record the $300,000 note payable on March 1, 2014.




P11-35 Accounting for liabilities of a known amount;This problem continues the Davis Consulting situation from Problem P10-42 of;Chapter 10. Davis Consulting believes the company will need to borrow $300,000;in order to expand operations. Davis consults the bank and secures a 10%, five-year;note on March 1, 2014. Davis must pay the bank principal in five equal installments;plus interest annually on March 1.;Requirements;1. Record the $300,000 note payable on March 1, 2014.;2. Record the entry to accrue interest due on the note at December 31, 2014.;3. Record the entry Davis would make to record the payment to the bank on;March 1, 2015.


Paper#23643 | Written in 18-Jul-2015

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