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There are 3 problems this week. Click on the tabs at the bottom of the spreadsheet to view each problem.
Prepare the journal entries for the eight following transactions. Use dates but descriptions are not required.
On 10/1/15, Equipment was purchased for $10,000 cash down payment and a 10% per annum promissory note of $40,000.
On 12/31/15, the fiscal year ended and the accrued interest was recorded as an adjusting entry.
On June 30, 2016 the note was paid in full. No interest has been accrued in 2016 yet.
There are 10,000 shares of $2 par common stock outstanding. The board of directors declares a 15 cent dividend per share on May 15, 2016.
On June 30, the above declared dividend is paid to holders of record as of June 20, 2016