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 $7.5 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 6.50 percent payable at maturity. The accounting period ends December 31 Required: 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on November 1 (b) impact of the adjusting entry on December 31, 2018; and (the payment of the note and interest on April 30, 2019, on the accounting equation (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to ossets, liabilities, or stockholders equity with a minus sign.) 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on Nove December 31, 2018; and (c) the payment of the note and interest on April 30, 2019, intermediate calculations. Enter your answers in whole dollars. Enter any decrea with a minus sign.) Assets Cash 7,500,000 Date November 1 2018 December 31, 2018 April 30, 2019 Notes Pa Interest Cash Interest ote on November 1: (b) impact of the adjusting entry on eril 30, 2019, on the accounting equation. (Do not round r any decreases to assets, liabilities, or stockholders equity Answer is not complete. Stockholders' Equity Liabilities Notes Payable (short-term) Interest Payable Interest Payable 7,500,000 Interest Expense Prev 7012 Next > 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 2018, Mitt borrowed $75 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 650 percent payable at maturity. The accounting period ends December 31 Required: 1. Indicate the accounts, amounts, and effects of the issuance of the note on November ( impact of the adjusting entry on December 31, 2018 and (the payment of the note and interest on April 30 2019. on the accounting equation (Do not round Intermediate calculations. Enter your answers in whole dollars. Enter any decreases to assets abilities or stockholders equity with a minus sign) Answer is not complete AN Cast Date Mwamber 2011 Dec 31, 2018 April 2019 7.500 DO Lab Notes Pavi short-term Interest Payable rusta 700.000 0.0 Cash response