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    littledepangel's Avatar
    littledepangel Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 10, 2009, 01:10 AM
    Notes payable
    2. Notes payable.
    On August 31, Grant Co. partially refunded $180,000 of its outstanding
    10% note payable made one year ago to Arma State Bank by paying $180,000
    Plus $18,000 interest, having obtained the $198,000 by using $52,400
    Cash and signing a new one-year $160,000 note discounted at 9% by the
    Bank.

    Instructions
    (1) Make the entry to record the partial refunding. Assume Grant Co.
    Makes reversing entries when appropriate.
    (2) Prepare the adjusting entry at December 31, assuming straight-line
    Amortization of the discount.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    May 10, 2009, 01:54 AM

    Please see the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help
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