Drake Consulting performs systems consulting and also sells accounting software. Drake Consulting believes the company will need to borrow $ 400 comma $400,000 in order to expand operations. Drake consults the bank and secures a 66%,five-year note on March 1, 2015.
Drake Consulting performs systems consulting and also sells accounting software. Drake Consulting believes the company will need to borrow $ 400 comma $400,000 in order to expand operations. Drake consults the bank and secures a 66%,five-year note on March1, 2015. Drake must pay the bank principal in five
equal installments plus interest annually on March 1.
Requirements
| 1. | Record the $400,000 note payable on March1, 2015. |
| 2. | Record the entry to accrue interest due on the note at DecemberDecember 31, 2015. |
| 3. | Record the entry Drake would make to record the payment to the bank on March1,2016. |
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