E$10-2($Algo$)$ Recording Notes Payable through the Time to Maturity $[$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{.}4$ million cash from Metropolitan Bank and signed a promissory note that matures

in six months. The interest rate was $6\mathrm{.}00$ percent payable at maturity. The accounting period ends December $31.$

Required:

$1,2$ & $3.$ Prepare the required journal entries to record the note on November $1,2021,$ the adjusting entry required on December $31$

$2021($if any$),$ and interest on the maturity date, April $30,2022,$ assuming that interest has not been recorded since December

$31,2021.($Enter your answers in whole dollars. If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry

Required" in the first account field.$)$

Journal entry worksheet

Record the borrowing of $$7,400,000.$

Note: Enter debits before credits.