On September 1, BLUEBIRD Corporation borrows $800,000 from the bank for six months at a...
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Accounting
On September 1, BLUEBIRD Corporation borrows $800,000 from the bank for six months at a stated interest rate of 12%. At the time of the loan BLUEBIRD's bank takes $96,000 interest from the $800,000 and gives the rest to BLUEBIRD. Calculate the effective interest rate on this loan Show the original T-account entry that would be made on September 1 and the year's interest expense adjusting entry required on December 31. Show the T-account entries necessary to record repayment of the loan on September 1 of the following year
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