Tamarisk, inc. borrows $67,200 on july 1 from the bank by signing a $67,200, 8%, 1-year note payable. (a) prepare the journal entry to record the proceeds of the note. (credit account titles are automatically indented when amount is entered. do not indent manually.)

journal entry  are given below

Explanation:

given data

borrows = $67,200

rate = 8 %

time = 1 year

to find out

Prepare the journal entry to record the proceeds of the note

solution

journal entry  are as on July 1 and December 31

date                              title                          debit                          credit

July 1                            cash                          67200  

                                   note payable                                               67200

December 31               interest expense        2688

                                     interest payable                                          2688

                                   ( interest = 6700 × 8% × )

answer; be sure that the information on file is correct;

answer; consideration;