1. On the last day of October Wicker Company borrows $120000 on a bank not for

1. On the last day of October Wicker Company borrows $120000 on a bank not for 60 days at 11 percent interest. Interest in not included in the face amount.
Prepare required journal entries:

a. October 31: To record the note

b. November 30: To accrue interest expense

c. December 30: to record the payment of the note plus interest.

2. Web Design Services billed its customers a total of $490200 for the month of August including 9 percent federal excise tax and 5 percent sales tax.

a. Determine the proper amount of service revenue to report for the month

b. Prepare an entry in journal form to record the revenue and related liabilities for the month.