Notes Payable

Essential Company, which manufactures steel tubing and casing for automobile production, borrowed $$444,000$ 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, $12\%,$ interestbearing note.

Required:

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

Jan. $1$

Notes Payable $$

$x$

$($Record issuance of note payable$)$

Feedback

$q,$

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

Sept. $1$

$\frac{\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}\text{P}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}}{\text{I}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}\text{E}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}}$

$$

$$

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

$q,$