Eskimo Joes, designer of the worlds second best-selling T-shirt (just behind Hard Rock Cafe), borrows $20.8 million cash on November 1, 2021. Eskimo Joes signs a six-month, 9% promissory note to Stillwater National Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.

Record the adjustments on December 31, 2021, for (a) Eskimo Joe's and (b) Stillwater National Bank (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)

1.Required

(1). Record the adjusting entry for interest for Eskimo Joe's.

(2).Record the adjusting entry for interest for Stillwater National Bank.

Prepare the journal entry on April 30, 2022, to record payment of the notes payable at maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)

2.Required

(1)Record the repayment of the note at maturity for Eskimo Joe's.

(2)Record the receipt of cash at maturity for Stillwater National Bank.