Chapter 4
Current Liabilities
169
AP-7A (
6
)
On May 1, 2017, ACME Bank agreed to lend Mirza Enterprises $100,000. Mirza signed a
$100,000, 10-month, 12% note. Mirza Enterprises has a year-end of December 31.
Required
Prepare the journal entry for Mirza Enterprises for the following.
a) On the date the note was signed
b) At year-end
c) On March 1, 2018, when the note is repaid
Date
Account Title and Explanation
Debit
Credit
