On December 31,2015,Newco Borrowed $100,000 from First National Bank,and Signed

question 85

Essay

On December 31,2015,Newco borrowed $100,000 from First National Bank,and signed a 12% note payable due in two years.Interest on the note is due at maturity.
Required:
Part a.Prepare the journal entry to record the borrowing transaction.
Part b.Describe how the note should be reported on Newco's classified balance sheets at December 31,2015 and December 31,2016.
Part c.Prepare the required adjusting entry on December 31,2016.
Part d.Prepare the journal entry to record the payment of the interest on December 31,2017.
Part e.Prepare the journal entry to record the payment of the note on December 31,2017.

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Definitions:

Transference

A tendency to map on, or transfer, feelings for a person who is known onto someone new who resembles that person in some way.

Physical Resemblance

The similarity in appearance between two or more entities, often referring to genetic or family traits.

Familiar Person

An individual who is recognized or well-known, often through previous encounters or established relationships.

Prosopagnosia

A neurological disorder characterized by the inability to recognize faces, also known as face blindness.