Emphasis 1 Heading... 1 Heading 2 1 Heading 3 1 Heading 4 Heading 5 Paragraph Styles Fact Set #3 (16 points) On August 1, 2020, Gandee Candy borrowed $120,000 from its bank and issued a 6-month promissory note bearing 6.4% interest. Under the terms of the note, interest is due quarterly on November 1 and February 1, 2021 and principal is due to the bank at maturity on February 1, 2021. Prepare the required journal entry to record the loan received from the bank on August 1, 2020. Post the entry to the applicable T-account(s). (2 points) DATE ACCOUNT NAMES DEBIT CREDIT 8/1/2020 Cash 120,000 Notes Payable 120,000 At November 1, 2020, Gandee Candy made the first quarterly interest payment to the bank on the note. Individual Homework #2 Page 12 of 18 Prepare the required journal entry to record the interest payment. Post the entry to the applicable T- accounts and compute their resulting balances. (3 points) DATE ACCOUNT NAMES DEBIT CREDIT 11/1/2020 Interest Expense 6400 Interest Payable 6400 Supporting Computation Required: 120,000 x .064 x 1/12 Notes Payable Interest Expense O RI ut References Mailings Review View Help Format Search At December 31, 2020, Gandes Candy determined that it must accrue the interest due to the bank on the note since the first interest payment made on November 1. Prepare the required adjusting journal entry to record the interest. Post the entry to the applicable T- accounts and compute their resulting balances. (4 points) ADJUSTING ENTRY: DATE ACCOUNT NAMES DEBIT CREDIT Supporting Computation Required: Indicate the names of the accounts and their balances from above that Gandee Candy would report in its GAAP financial statements for fiscal year 2020. DO NOT INCLUDE CASH (3 points) Page 13 of 18 Individual Homework #2 Balance Sheet at December 31, 2020: Current Liabilities: Amount Income Statement for the year ended December 31, 2020: Amount On February 1, 2021, Sandee Candy issued a check to its bank in full settlement of the principal and interest due on the note. Prepare the required journal entry to record the settlement of the note and interest due. ( points) DATE ACCOUNT NAMES DEBIT CREDIT O DI ayout References Mailings Review View Help Search On February 1, 2021, Gandes Candy issued a check to its bank in full settlement of the principal and Interest due on the note. Prepare the required journal entry to record the settlement of the note and interest due. (4 points) DATE ACCOUNT NAMES DEBIT CREDIT Supporting Computation Required: I o RI