2 E10-2 (Algo) Recording Notes Payable through the Time to Maturity [LO 10-2] 3 points Return to question 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 $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, 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.) Answer is complete but not entirely correct. No Date General Journal 1 Nov 01, 2021 Bank Charges Expense Debit 7,300,000 Credit Notes Payable (short-term) 7,300,000 2 Dec 31, 2021 Interest Expense Interest Payable 121,666 x 121,666 2 3 points Return to question 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 $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, 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.) Answer is complete but not entirely correct. No Date General Journal 1 Nov 01, 2021 Cash Notes Payable (short-term) 2 Dec 31, 2021 Interest Expense Interest Payable Debit Credit 7,300,000 7,300,000 1,216,666 1,216,666 3 Apr 30, 2022 Interest Expense 243,333 Interest Payable 1,216,666 Notes Payable (short-term) 7,300,000 Cash 8,540,999 x