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)