Exercise 10-3 Your answer is correct. On June 1, Chetney Company Ltd. borrows $94,500 from First Bank on a 6-month, $94,500, 8% note. The note matures on December 1. (a) Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (d) What was the total financing cost (interest expense)?

Exercise 10-3
	Your answer is correct.

On June 1, Chetney Company Ltd. borrows $94,500 from First Bank on a 6-month, $94,500, 8% note. The note matures on December 1.

(a) Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(d) What was the total financing cost (interest expense)?

 

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