Brief Exercise 8-2
Crane Company borrows $70,800 on July 1 from the bank by signing a $70,800, 8%, 1-year note payable.
Prepare a tabular summary to record (a) the proceeds of the note and (b) accrued interest at December 31, assuming adjustments are made only at the end of the year.
Equity item that was reduced.)
Assets
Cash
(a)
(b)
Liabilities
Notes Payable + Interest Payable + Common Stock + Revenue
$
$
$
$
Stockholders' Equity
Retained Earnings
Expense
Dividend
$
Interest expense