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.
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11/01/11
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Cash .....................................
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40,000
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Notes
Payable........................
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40,000
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12/31/11
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Interest Expense..........................
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600
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Interest
Payable.....................
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600
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($40,000 X 9% X 2/12)
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02/01/12
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Notes Payable.............................
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40,000
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Interest Payable..........................
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600
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Interest Expense..........................
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300
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Cash.................................
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40,900
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