On october 1, bramble's carpet service borrows $348000 from first national bank on a 3-month, $348000, 8% note. the entry by bra
mble's carpet service to record payment of the note and accrued interest on january 1 isrom+highlands+bank+on+a+4-month%2c+%24163000%2c+6%25+note.+what+entry+must+vaughn%27s+painting+service+make+on+december+31+before+financial+statements+are+prepared%3f&aqs=chrome..69i57j5i66l3j69i58j0i66.398j0j4&sourceid=chrome&ie=utf-8
Payable interest = Note payable × Interest rate × (no of months used/no of months in a year)
348000*(8/100)*(3/12)
= 3480*8*(3/12)
= 83520/12
= $6,960
The total cash will be $348000 + $6960 = $354960
Therefore in the account statement, om the debit side we will have the Notes payable and payable interest, while on the credit side we will have total cash.
