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Below Are Two Related Transactions for Golden Corporation

question 116

Essay

Below are two related transactions for Golden Corporation. The annual accounting period ends December 31. The books are adjusted only at year-end.
A. October 1, 2014: Golden Corporation borrowed $100,000 and signed a note providing for 8% interest. The principal and interest are due in one year on September 30, 2015.
B. December 31, 2014: End of the annual accounting period.
Required:
Prepare the required journal entry at October 31 and December 31, 2014 for each of the above items.


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