Acc291 Principles of Accounting: E11-2 On June 1, Melendez Company borrows $90,000 from First Bank

Acc291 Principles of Accounting

E11-2
On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note.

Instructions:
a. Prepare the entry on June 1.
b. Prepare the adjusting entry on June 30.
c. Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)
d. What was the total financing cost (interest expense)?
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