Refer
to the data for Upland Limited in BE13-3. Assuming that Upland uses reversing
entries, prepare the 2012 journal entry(ies).
IN
BE
Upland
Limited borrowed $40,000 on November 1, 2011, by signing a $40,000,
three-month, 9% note. Prepare Upland’s November 1, 2011 entry; the December 31,
2011 annual adjusting entry; and the February 1, 2012 entry.
|
01/01/12
|
Interest Payable......................
|
600
|
|
|
|
Interest
Expense.................
|
|
600
|
|
|
|
|
|
|
02/01/12
|
Notes Payable.........................
|
40,000
|
|
|
|
Interest Expense......................
|
900
|
|
|
|
Cash.............................
|
|
40,900
|
