20) The following selected transactions relate to assets of Metro Bank. Metro's fiscal year ends on December 31.

Required:

Prepare the appropriate journal entries through the maturity for Metro Bank only (not for the borrower).

2022

April 1 Metro loaned $12 million and received a 3-month promissory note with 8% interest payable at maturity (July 1).

July 1 Received the 8% loan at maturity.

Nov. 1 Supported by the credit agreement, a client issued (signed) $20 million of commercial paper on a 9-month note to Metro. Interest was discounted at issuance at a 6% discount rate.

Dec. 31 Recorded any necessary adjusting entry(s).

2023

Aug. 1 Received the commercial paper at maturity.