INTEREST-BEARING NOTE Fairborne Company borrowed $240,000 on a five-month, 7 percent, interest-bearing note on November 1, 2008. Fairborne ends its fiscal year on December 31.

The note was paid with interest on March 31, 2009.

Required:

. Prepare the entry for this note on November 1, 2008.

. Prepare the adjusting entry for this note on December 31, 2008.

. Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2008.

. Prepare the entry to record the repayment of the note on March 31, 2009.