INTEREST-BEARING NOTE PAYABLE. Shubert Theater Productions borrowed

$2.4 million from NBD Bank on a 1-year, 8% note. The loan was effective on August 1, 19x7, and is to be repaid July 31, 19x8.

REQUIRED:

1. Prepare the entry to record the borrowing in Shubert’s journal.

2. Compute interest expense from August 1 through December 31.

3. Prepare a December 31 adjusting entry for interest on the note for Shubert’s journal.

4. Determine interest expense on the note for 19x8.

5. Prepare the entry for Shubert’s journal to record payment of principal plus interest on the note at July 31, 19x8.

4-33. INTEREST-BEARING NOTE RECEIVABLE. Bank of America loaned Nissan USA $18 million on May 1, 19x8, on a 1-year, 7% interest-bearing note.
REQUIRED:
1. Prepare the entry to record the loan in Bank of America’s journal.
2. Compute the interest revenue earned by Bank of America from May 1 to December Sly 3. Prepare the adjusting entry to record interest on the note in Bank of America’s journal on December 31.
4. Determine the amount of the interest revenue earned in 19x9.
5. Prepare the entry to record the receipt of principal and interest from Nissan on April 30, 19x9.