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E10-2 (Algo) Recording Notes Payable through the Time to Maturity [LO 10-2] Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sales several months after Christmas. Assume on November 1, 2021, Mitt Corporation borrowed $6.8 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 7.50 percent payable at maturity. The accounting period ends December 31. Required: 1, 2 & 3. Prepare the required journal entries to record the note on November 1, 2021, the adjusting entry required on December 31 2021 (if any), and interest on the maturity date, April 30, 2022, assuming that interest has not been recorded since December 31, 2021. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet PA10-2 (Algo) Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio (LO 10-2, LO 10-5] Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $480,000 from Commerce Bank after signing a 12-month, 6 percent, promissory note June 6 Purchased merchandise on account at a cost of $67,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. August 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $19,200. December 31 Determined salary and wages of $32,000 were earned but not yet paid as of December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to security service. Required: 1. & 2. Prepare journal entries for each of the transactions through August 31 and adjusting entries required on December 31. 3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31. Journal entry worksheet Record the borrowing of $480,000. Note: Enter debits before credits. General Journal Debit Credit Date April 30 Record entry Clear entry View general Journal Check my Req 1 and 2 Req3 Show how all of the liabilities arising from these items are reported on the balance sheet a intermediate calculations.) JACK HAMMER COMPANY Balance Sheet (partial) At December 31 $ 0