Notes Payable

Essential Company, which manufactures steel tubing and casing for automobile production, borrowed $$660,000$ on January $1$ to finance the purchase of a new piece of machinery with new heating technology. The terms of Essential's note dictate that it is a $8-$month, $12\%,$ interest$-$bearing note.

Required:

Record the borrowing transaction. If an amount box does not require an entry, leave it blank.

Jan. $1$

$($Record issuance of note payable$)$

$2.$ Record the repayment transaction. If an amount box does not require an entry, leave it blank.

Sept. $1$

$($Record payment of interest and principal$)$