Mariy businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mirt Corporation builds up its inventory to meet the needs of retallers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation offen collects cash from its sales several months after Christmas. Assume on November 1,2021, Mitt Corporation 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. 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, 2021, and (d) the payment of the note and interest on April 30, 2022, on the accounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to astets, liabilities, or stockholders equity with a minus sign.) Mariy businesses borrow money during periods of increased business activity to finance inventory and accounts recelvable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sales several months after Christmas. Assume on November 1,2021, Mitt Corporation 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: 1,2&3. Prepare the required journal entries to record the note on November 1,2021 , the adjusting entry required on December 312021 (if any), and interest on the maturity date, April 30, 2022, assuming that interest has not been recorded since December 31, 2021. (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.) Journal entry worksheet 3 Record the borrowing of $7,500,000. Note: Enter debits before credits. Mariy businesses borrow money during periods of increased business activity to finance inventory and accounts recelvable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sajes several months after Christmas. Assume on November 1,2021, Mitt Corporation borrowed $7.5 million cash from Retropolitan 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: 1,2&3. Prepare the required journal entries to record the note on November 1,2021 , the adjusting entry required on December 312021 (if any), and interest on the maturity date, April 30, 2022, assuming that interest has not been recorded since December 31,2021. (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.) Journal entry worksheet Record the interest accrued on the note payable as of December 31, 2021. Note: Enter debits before credits. 4 Mariy businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation offen collects cash from its sales several months after Christmas. Assume on November 1,2021, Mitt Corporation 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, 2&3. Prepare the required journal entries to record the note on November 1,2021 , the adjusting entry required on December 312021 (if any), and interest on the maturity date, April 30, 2022, assuming that interest has not been recorded since December 31,2021 . (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.) Journal entry worksheet 1 Record the repayment of the note plus interest on the maturity date. Note: Enter debits before credits
