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 $8.2 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 10.00 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

Answer is not complete. No Date General Journal Debit Credit Nov 01, 2018 1 Cash 8,200,000 Notes Payable (short-term) 8,200,000 Interest Expense 106,666 2 Dec 31, 2018 Interest Payable 136,666 Notes Payable (short-term) Apr 30, 2019 8,200,000 Interest Payable 136,666 Interest Expense 410,000 3,610,000 Cash