Notes Payable}

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 four-month, \(9 \%\), interestbearing note.

Required:

1. Record the borrowing transaction.

2. Record the repayment transaction.

\section*{Brief Exercise