On June 1, Huntley Company Borrows $50,000 from the Bank

question 87

Essay

On June 1, Huntley Company borrows $50,000 from the bank by signing a 60-day, 6%, interest-bearing note.
Instructions
Prepare the necessary entries below associated with the note payable on the books of Huntley Company.
(a) Prepare the entry on June 1 when the note was issued.
(b) Prepare any adjusting entries necessary on June 30 in order to prepare the monthly financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the entry to record payment of the note at maturity.

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Definitions:

Sieve-tube Members

Specialized cells in the phloem of plants that facilitate the transport of sugars and nutrients from the leaves to other parts of the plant.

Phloem Transport

The process by which sugars, produced during photosynthesis, are transported throughout a plant via the phloem tissue.

Passive Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration without the input of energy.

Vascular Cylinder

The central part of a plant root, containing the xylem, phloem, and other tissues that transport water and nutrients.