Drake Consulting performs systems consulting and also sells accounting software. Drake Consulting believes the company will need to borrow $600,000 in order to expand operations. Drake consults the bank and secures a 4%, six-year note on March 1, 2017. Drake must pay the bank principal in six equal installments plus interest annually on March 1.

Drake Consulting performs systems consulting and also sells accounting software Drake Requirements Consulting believes the company will need to borrow $600,000 in order to expand operations 1. Record the $600,000 note payable on March 1, 2017. Drake consults the bank and secures a 4%, six-year note on March 1, 2017. Drake must pay 2. Record the entry to accrue interest due on the note at December 31, 2017. the bank principal in six equal installments plus interest annually on March 1 3. Record the entry Drake would make to record the payment to the bank on March 1, 2018. Requirement 1. Record the $600,000 note payable on March 1, 2017. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Cash 2017 600,000 Mar. 1 Long-Term Notes Payable 600,000 Received cash in exchange for a 6-year 4% note. Requirement 2. Record the entry to accrue interest due on the note at December 31, 2017. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Date Accounts and Explanation Debit 2017 Interest Expense Dec. 31 Interest Payable Choose from any list or enter any number in the input fields and then click Check