E112Tonies Painting borrows $250,000 from the TD Bank on October 1, 2003. It signs a two- year, 10% note payable. Interest is payable monthly.

Instructions (a) Prepare the journal entries to record the transactions on October 1, 2003, and the first interest payment on November 1 for Tonies Construction. Round your answers to the nearest dollar. (b) Prepare the journal entries to record the transactions on October 1, 2003, and the first interest receipt on November 1 for the TD Bank. (Hint: You might find it helpful to review accounting for notes receivable in Chapter 9.)