the same questions but different dates Exercise 8-3 Record notes payable (LO8-2)

Question

the same questions but different dates

Exercise 8-3 Record notes payable (LO8-2) On August 1, 2018, Trico Technologies, an aeronautic electronics company, borrows $19.9 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico's year-end is December 31. Required: 1., 2. & 3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) Journal entry worksheet Record the issuance of note. Note: Enter debits before credits General Journal Debit Credit August 01, 2018 Record entry View general journal Hints References eBook &Resources;

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Aug 1,2018 Cash 19900000    Notes payable 19900000 (To record amount borrow ) Dec 31,2018 Interest expense 746250      Interest payable 746250 (To record accured interest) Jan 31,2019 Notes payable 19900000 Interest payable 746250 Interest expense 149250      Cash 20795500 (To record payment)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.