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{.}5$ million cash from Metropolitan Bank and signed a promissory note that matures

$0\mathrm{.}83$

points

in six months. The interest rate was $6\mathrm{.}50$ percent payable at maturity. The accounting period ends December $31.$

Required:

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References

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.$)$

$\backslash$table$[[$Date$,$Assets,$=,$Liabilities,$+,$Stockholders' Ec$],[$a$.$ November $1,2021,$:$.,=8,,+,],[$b$.$ December $31,2021,,=,,+1,],[$c$.$ April $30,2022,,=1,,+,],[,,=,,+,]]$