A Company Borrows $20,000 with 8% Interest on October 1

question 150

Essay

A company borrows $20,000 with 8% interest on October 1, 2012. This amount plus interest is due on September 30, 2013. Record the adjusting entry on December 31, 2012.

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Definitions:

Controlling

Monitors performance and takes any needed corrective action.

Resources

Assets, materials, and other necessities available to individuals or organizations to achieve specific goals or carry out particular activities.

Uncommitted

A state or condition of having no loyalty or dedication to a cause, organization, or relationship.

Unenthusiastic

Lacking in enthusiasm, interest, or energy; showing little excitement or motivation.