Prepare the Journal Entry to Correct Huang's Records as of June

question 64

Essay

Prepare the journal entry to correct Huang's records as of June 30. (Explanations may be omitted; one compound journal entry is acceptable.)
$$\begin{array} { | l | l | l | l | } \hline 2009 & \text { General Journal } & \text { Debit } & \text { Credit } \\\hline \text { June } 30 & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits.

Maturity Matching Principle

A financial strategy that involves matching the maturities of assets and liabilities to reduce risk in managing working capital and financing.

Revolving Credit Agreement

A Revolving Credit Agreement is a financial arrangement which allows the borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.

Commitment Fee

A fee charged by a lender to a borrower for an agreed-upon loan or line of credit that has not yet been utilized.