Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 3.2S
LO 1
(Learning Objective 1: Explain how accrual accounting differs from cash-basis accounting) Portage Corporation began 2018 owing notes payable cf $4.0 million. During 2018. Portage borrowed $1.9 million on notes payable and pale off $1.7 million of notes payable from prior years Interest expense for the year was $1.1 million, including $0.2 million of interest payable accrued at December 31, 2018.
Show what Portage should report for these facts on the following financial statement
- 1. Income statement for 2018
- a. interest expense
- 2.
Balance sheet as of December 31. 2018- a. Notes payable
- b. Interest payable
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Chapter 3 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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