Note Payable and Accrued Interest Fairborne Company borrowed $600,000 on an 8%, interest-bearing note on October 1, 2019. Fairborne ends its fiscal year on December 31. The note was paid with interest on May 1, 2020. Required: 1.

Prepare the entry for this note on October 1, 2019.

2019 Oct. 1 Cash =?

Notes Payable=?

Prepare the adjusting entry for this note on December 31, 2019.

2019 Dec. 31

Interest Expense =?

Interest Payable =?

Indicate how the note and the accrued interest would appear in the balance sheet at December 31, 2019.

Among the current liabilities:

Short-term notes payable=?

Interest payable=?

Prepare the entry to record the repayment of the note on May 1, 2020. If an amount box does not require an entry, leave it blank.

2020 May 1	Notes Payable
	Interest Payable
	Interest Expense
	Cash