im having trouble with this journal enrty please show how you calculated for interest expense/payable, thank you have a great rest of the day!
E10-2 Recording a Note Payable through its Time to Maturity (LO 10-2] Many businesses borrow money during periods of Increased business activity to finance Inventory and accounts receivable. For example, Mitt builds up its Inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.3 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The Interest rate was 9.50 percent payable at maturity. The accounting period ends December 31. Required: 12&3. Prepare the required journal entries to record the note on November 2018, Interest on the maturity date, April 30, 2019. assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) 10-2 Recording a Note Payable through Its Time to Maturity [LO 10 lany businesses borrow money during periods of Increased business activity to financ example, Mitt builds up Its Inventory to meet the needs of retailers selling to Christmas redit. As a result, Mitt often collects cash from its sales several months after Christmas. 6.3 million cash from Metropolitan Bank and signed a promissory note that matures in ayable at maturity. The accounting period ends December 31. Hequired: .2 & 3. Prepare the required journal entries to record the note on November 1, 2018, Int assuming that interest has not been recorded since December 31, 2018. (Enter yo required for a transaction/event, select "No Journal Entry Required" in the first View transaction at Record the borrowing of $6.300.000 2 Record the interest accrued on the note payable as of December 31, 2018 Record the repayment of the note plus interest on the Credit 0.300.000 www. ruy e to Matury ILO 10-2 Many businesses borrow money during periods of increased business activity to finance Inventory and accounts receivable. For example. Mitt builds up its inventory to meet the needs of retallers seling to Christmas shoppers. A large portion of Mitr's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 2018, Mitt borrowed $6.3 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 9.50 percent payable at maturity. The accounting period ends December 31 Required 1.2 & 3. Prepare the required journal entries to record the note on November 1, 2018, Interest on the maturity date. April 30, 2019. assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Credit No 1 Date Nov 01, 2018 Answer is not complete. General Journal Cash Notes Payable (short-term) Debit 0.300.000 0 0.300.000 Dec 31, 2018 78.750 Interest Expense Interest Payable 73750 X 3 Apr 30, 2019 @ Notes Payable (long-term) Interest Payable 6.300.000 78.750
