Takemoto
Corporation borrowed $60,000 on November 1, 2011, by signing a $61,350,
three-month, zero-interest-bearing note. Prepare Takemoto’s November 1, 2011
entry; the December 31, 2011 annual adjusting entry; and the February 1, 2012
entry.
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11/01/11
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Cash .....................................
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60,000
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Notes
Payable........................
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60,000
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12/31/11
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Interest Expense..........................
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900
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Notes
Payable........................
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900
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($1,350 X 2/3)
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02/01/12
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Interest Expense..........................
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450
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Notes
Payable........................
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450
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Notes Payable.............................
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61,350
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Cash.................................
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61,350
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