E$10-1($Algo$)$ Determining Financial Statement Effects of Transactions Involving Notes Payable $[$LO $10-2]$

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\mathrm{.}1$ million cash from Metropolitan Bank and signed a promissory note that matures

in six months. The interest rate was $9\mathrm{.}00$ percent payable at maturity. The accounting period ends December $31.$

Required:

Indicate the accounts, amounts, and effects of the $($a$)$ issuance of the note on November $1$; $($b$)$ impact of the adjusting entry on

December $31,2021$; and $($c$)$ the payment of the note and interest on April $30,2022,$ on the accounting equation. $($Do not round

intermediate calculations. Enter your answers in whole dollars. Enter any decreases to assets, liabilities, or stockholders equity

with a minus sign.$)$