The business “ABC” (owner Denys Arcand), started its operations on Feb.01, 2020.
On Feb.01, 2020 (morning), the owner deposited 200,000$ in the bank account of the organization.
On Feb.01, 2020 (afternoon), the organization ABC lend 75,000$ to another organization XYZ. The interest rate is 7.85%/year (simple rate). The organization XYZ must pay the capital & the interest in 2 months
On April.01, 2020, the organization XYZ pay the capital & interests.
Perform the accounting cycle for the month of February & March & April 2020.
Sample Solution
