ACC 311- Final Exam Guide - Comprehensive Notes for the exam ( 23 pages long!)
Document Summary
Prepare the journal entries for each of the liabilities, including any year-end adjusting entries for united corporation. Jan 13 negotiated a revolving credit agreement with the parish bank that can be renewed annually upon bank approval. The amount available under the line of credit is million at the (cid:271)a(cid:374)k(cid:859)s p(cid:396)i(cid:373)e (cid:396)ate. Feb 1 arranged a three-month bank loan of million with parish. Interest at the prime rate of 10% was payable at maturity. Dec 1 supported by the credit issued million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount. line, Sept 1 paid the commercial paper at maturity. On october 1 a company borrowed million and issued a nine-month 12% promissory note. Prepare the journal entry for the issuance of the note. Provide the appropriate adjusting entry for the note on. Now assume that the nine-month promissory note was discounted at issuance at a 12% discount rate.
