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    Sigfried Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable.

    Prepare the journal entry to record the proceeds of the note.

    Prepare the journal entry to record the accrued interest at December 31st, assuming adjusting journal entries are made only at the end of the year.)

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    Solution Preview

    Payment of creditors on account is CP that is Cash payments journal.
    Return of merchandise sold on credit is G that is General Journal
    Collection on account from customers is CR that is Cash Receipts journal.
    Sale of land for cash is CR cash receipts journal.
    Sale of merchandise on account is S sales journal.
    Sale of merchandise for cash is CR cash receipts journal.
    Received ...

    Solution Summary

    The expert examines journal entries for accounting principles.