This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1914 Excerpt: …character should be charged to expense accounts, by journal entry, in the months when the expense is incurred, regardless of the date of payment. 176. INTEREST ACCRUED WILL OCCUR where notes are drawn with interest payable & maturity or payable on certain specified dates. 177. INTEREST ON BONDS should have a separate account for the accrued interest, and also a separate interest expense account. 178. The illustration for this subject contemplates a condition where the interest cost for the first month was $27.50; the second month the cost was increased by $35.50; the third month it was further increased by $12. On Mar. 15, interest to the amount of $82.50 was paid. Jan. 31 Interest cost for the month, $27.50. Feb. 28 Interest cost for the month, 63. Mar. 15 Interest paid, $82.50. 31 Interest cost for the month, 75. Prepare Ledger account as shown. Exercise No. 82 Jan. 10 Borrowed $5,000 @ 6% for 4 mo. 21 Borrowed $3,000 @ 6% for 3 mo. Feb. 25 Borrowed $2,500 @ 6% for 3 mo. Mar. 9 Borrowed $4,000 @ 6% for 4 mo. 23 Borrowed $6,500 @ 6% for 3 mo. Apr. 21 Paid note due today, $3,045, and renewed the loan at same time and rate. Prepare Ledger account and show balance in pencil. Continuing Exercise 82: Exercise No. 83 Paid note due today, $5,100, renewed loan, same time and rate. Borrowed $4,000 @ 5Y2% for 4 mo. Paid note due today, $2,537.50, renewed loan, eame time and rate. Borrowed $5,000 @ S/2% for 4 mo. Paid note due today, $6,597.50, renewed $5,000, same time, S/2%. Paid note due today, $4,080, renewed $4,000 due Oct. 12, 5V2%. Paid note due today, $3,045, renewed $3,000 due Oct. 12, 5H%. Prepare Ledger account and show balance in pencil. Exercise No. 84 Continuing Exercise 83: Aug. 14 Borrowed $3,500 @ SY2% due Nov. 25. 25 Paid …
