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On November 1 2015 Dual Systems borrows $200000 to expand operations

On November 1, 2015, Dual Systems borrows $200,000 to expand operations. Dual Systems signs a six-month, 9% promissory note. Interest is payable at maturity. Dual System’s year-end is December 31.

 
1.   Record the issuance of the note by Dual Systems.

2.   Record the appropriate adjusting entry for the note by Dual Systems on December 31, 2015.

3.   Record the payment of the note by Dual Systems at maturity on April 30, 2016.

 

 

 

120. Assume that on July 1, 2015, Togo’s Sandwiches issues a $2 million, one-year note. Interest is payable at maturity. Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
 

Interest Rate Fiscal Year-End

1.   8% December 31
2.   9% September 30
3.   6% October 31
4.   7% January 31

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