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On June 1, Sheridan Company Ltd. borrows $162,000 from Acme Bank on a 6-month, $162,000,...

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Accounting

On June 1, Sheridan Company Ltd. borrows $162,000 from Acme Bank on a 6-month, $162,000, 4% note. The note matures on December 1.

a) Prepare the entry on June 1.

b) Prepare the adjusting entry on June 30.

c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.

d) What was the total financing cost (interest expense)?

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