1) A 1 1/2 -year loan in the amount of $100,000 with 12% interest was taken out on June 1, 2020.

a) Calculate the interest for December 31. (Hint: From June 1 - Dec 31 -- use your fingers)

Note Payable Entries

b) Prepare the journal entry for the issuance of the Note Payable.

c) Prepare the adjusting journal entry for interest expense December 31, 2020

(HINT: found amount in a)

d) Prepare the journal entry at maturity November 30, 2021

1b) Prepare the following Journal entries for Bond Issuance

a) Issued $100,000 in bonds at face value.

b) Issued $100,000 in bonds for 98 (Discount)

c) Issued $100,000 in bonds for 101. (Premium)