Lynbrook borrowed 82,500 on November 1, 2021 to finance the purchase of a new computer system. The terms of the note dictate that it is a 5-month, 8%, interest-bearing note.

Required:

1. Prepare the entry to record the borrowing of the note on November 1, 2021.

2. Prepare the adjusting journal entry on December 31, 2021 (assuming Lynbrook only prepares AJEs annually on December 31)

3. Prepare the entry to record the payment of the note on April 1, 2022.