Ask Experts Questions for FREE Help !
Ask
    John_eard's Avatar
    John_eard Posts: 7, Reputation: 1
    New Member
     
    #1

    Nov 25, 2007, 07:33 PM
    Adjusting at the end of every month
    Help


    Customer gave seller a 12 % promissory note for $ 90 0000 owed. The note calls for interest to accrue at the rate of 12% per annum, all payable upon the maturity date ( sEpt 17)


    The question is, do I need to adjust the journal at the end of every month or do I need to wait until Sept 17 ?

    Thanks in advance
    Pseudonym's Avatar
    Pseudonym Posts: 5, Reputation: 1
    New Member
     
    #2

    Nov 25, 2007, 09:29 PM
    Well, if you're creating financial statements every month, you'd need to make adjusting entries at the end of every month to get the right expenses and payables in the income statement and balance sheet. But if you're making the financial statements at the end of the year (sept 17), you don't need to make adjusting entries for every month. That's my understanding.
    student 101's Avatar
    student 101 Posts: 53, Reputation: 1
    Junior Member
     
    #3

    Nov 25, 2007, 11:47 PM
    Quote Originally Posted by John_eard
    Help


    Customer gave seller a 12 % promissory note for $ 90 0000 owed. The note calls for interest to accrue at the rate of 12% per annum, all payable upon the maturity date ( sEpt 17)


    The question is, do i need to adjust the journal at the end of every month or do i need to wait until Sept 17 ?

    Thanks in advance
    Well no because the problem says payable in maturity day which is September 17 , so just record the interest and the payable by that date.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Year-end adjusting entry [ 2 Answers ]

Services totaling $780 had been performed but not yet billed or recorded. Would this be consider an no entry

Give tenant until the end of the month to pay? (Michigan) [ 2 Answers ]

Yes, it's me again. Believe it or not, not only do I have a question about the roofer that is trying to pull a fast one on me, but a tenant that isn't paying as well. He has been a good tenant up until now. He has unfortunately lost his job. This is more of a suggestion thing than anything. I am...

Adjusting entries for year end [ 1 Answers ]

Hi everyone. I was wondering about year end adjusting enteries. What do I do with cash. Do I adjust it or leave it alone? I started with 25,000 and I ended with 30,000. Do I put this in OE or somewhere else. Do I adjust everything with a different balance?:eek:

Year-end Adjusting enteries [ 1 Answers ]

It is estimated that 5% of the accounts receivable balances, which is 49,000 will become uncollectible. What type of adjusting entry should I make?


View more questions Search