Renchen Company, which manufactures steel tubing and casing for automobile production, borrowed $500,000 on January 1 to

Question:

Renchen Company, which manufactures steel tubing and casing for automobile production, borrowed $500,000 on January 1 to finance the purchase of a new piece of machinery with new heating technology. The terms of Renchen's note dictate that it is a 4-month, 9%, interest-bearing note.
Required:
1. Record the borrowing transaction.
2. Record the repayment transaction.