5. On May 1, Sea Crest, Inc. borrows $80,000 from the bank by signing a 6-month, 12%, interest-

bearing note. Prepare the necessary entries below associated with the note payable on the books of

Sea Crest, Inc.:

(a) Prepare the entry on May 1 when the note was issued.

(b) Prepare any adjusting entries necessary on May 31 in order to prepare the fiscal year ending

financial statements.

(c) Prepare the entry on November 1 to record payment of the note at maturity. Assume no interest

accrual entries, other than the one on May 31, have been made.