Note Payable and Accrued Interest Farsi Company borrowed \(\$ 600,000\) on an \(8 \%\), interest-bearing note on October 1, 2018. Farsi YOUDECIDE ends its fiscal year on December 31. The note was paid with interest on May 1, 2019.

\section*{Required:}

1. Prepare the entry for this note on October \(1,2018\).

2. Prepare the adjusting entry for this note on December 31, 2018.

3. Indicate how the note and the accrued interest would appear on the statement of financial position at December 31, 2018.

4. Prepare the entry to record the repayment of the note on May 1, 2019.

\section*{OBJECTIVE 2 Problem