8.7

Fairborne Company borrowed $600,000 on an 8%, interest-bearing note on October 1,2023 . Fairborne ends its fiscal year on December 31 . The note was paid with interest on May 1, 2024, Required: 1. Prepare the entry for this note on October 1, 2023. If an amount box does not require an entry, leave it blank: 2023Oct,1 (Record issuance of note) 2. Prepare the adjusting entry for this note on December 31, 2023. If an amount box does not require an entry, leave it blank. 2023 Dec. 31 (Record accrued interest) 3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31,2023. Among the current liabilities: Short-term notes payable : Interest payable 4. Prepare the entry to record the repayment of the note on May 1, 2024. If an amount box does not require an entry, leave it blank. 2024