III-1. Metro Products began operations in 20x1. Metro's fiscal year ends on December 31. 20x1: (1) On October 1, Metro borrowed $8,000,000 cash and issued a 5-month promissory note with 10% interest payable at maturity. (2) Metro recorded accrued interest. 20x2: (3) Metro paid the promissory note on the March 1 due date. Required: Prepare the appropriate journal entries.

III-2. On November 1, 20x1, a $216,000, 9-month, noninterest-bearing note is issued at a 10% discount rate. Required: (1) Prepare the appropriate journal entry to record the issuance of the note.

(2) Prepare the appropriate journal entry on December 31, 20x1, to record interest on the note for the 20x1 financial statements.

(3) Prepare the appropriate journal entry(s) on July 31, 20x2, to record interest and the

payment of the note.