E10-1 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. Target Corporation is one of America's largest general merchandise retailers. Each Christmas, Target builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, Target often collects cash from the sales several months after Christmas. Assume that on November 1, 2015, Target borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.0 percent payable at maturity. The accounting period ends December 31 Required: 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on Nomber 1: (b) impact of the adjusting entry on December 31, 2015; and (c) the payment of the note and interest on April 30 2016, on the accounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to account balances with a minus sign.) Answer is not complete. Date Assets ilities Equity 6,000,00Note Payable 6,000,000 Cash 2015 80,000Interest Expense 6,000,000 80,000 Interest Payable 15 April 30, 2016 Cash 6,000,000Note Payable Cash Interest Expense Interest Expense