Managerial Accounting: P11-35 Daniels Consulting believes the company will need to borrow
Managerial Accounting P11-35 Accounting for liabilities of a known amount This problem continues the Daniels Consulting situation from Problem P10-23 of Chapter 10. Daniels Consulting believes the company will need to borrow $300,000 in order to expand operations. Daniels consults the bank and secures a 6%, five-year note on March 1, 2017. Daniels must pay the bank principal in five equal installments plus interest annually on March 1.
Requirements 1. Record the $300,000 note payable on March 1, 2017. 2. Record the entry to accrue interest due on the note at December 31, 2017. 3. Record the entry Daniels would make to record the payment to the bank on March 1, 2018.