Chapter 4
Current Liabilities
178
AP-17A (
6
)
On February 1, 2016, Red Ball received a bank loan for $30,000. The loan bears an interest rate
of 2.5% per annum, and will mature in two years. Red Ball has a December 31 year-end. The
partial principal of $15,000 plus interest is payable every January 31. Prepare the necessary
journal entries from February 1, 2016 to January 31, 2018.
Date
Account Title and Explanation
Debit
Credit
