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John’s Boat Yard, Inc., repairs, stores, and cleans boats for customers.

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January 6th, 2018

John’s Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, November 30, 2015. The transactions during 2015 have been journalized and posted. The following data with respect to adjusting entries are available:a. John’s borrowed $300,000 at a 11 percent annual interest rate on April 1, 2015, to expand its boat storage facility. The loan requires John’s to pay the interest quarterly until the note is repaid in three years. John’s paid quarterly interest on July 1 and October 1How should adjust and record the transaction a. on journal entry?

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