1)

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $7.3 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 10.00 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, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018. (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.)

1. Record the borrowing of $7,300,000.

2. Record the interest accrued on the note payable as of December 31, 2018.

3. Record the repayment of the note plus interest on the maturity date.

2)

Marshalls Corporation completed a $610,000, 6 percent bond issue on January 1, 2018. The bonds pay interest each December 31 and mature 10 years from January 1, 2018.

Required:

For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2018, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)

Marshalls Corporation completed a $610,000, 6 percent bond issue on January 1, 2018. The bonds pay interest each December 31 and mature 10 years from January 1, 2018.

Required:

For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2018, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)

Required:

For each of the three independent cases that follow, provide the following amounts to be reported on the January 1, 2018, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.)

Case A ( Issued at 100) Case B ( Issued at 97) Case C ( Issued at 97)

a. Bonds Payable

b. Unamortized premium (or discount)

c. carrying value