Notes Payable Essential Company, which manufactures steel tubing and casing for automobile production, borrowed $396,000 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: 1. 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)

Notes Payable Essential Compary, which manufactures steel tubing and casing for automobile production, borrowed \$396,000 on danuary 1 to finarice the purchase of a new piece of machinery with new heating technologk. The terms of Escental's note dictate that it is a 8 month, 12%, interest boaring note. Required: 1. Record the borrowing transaction. If an amount box does not require an entry, leave it blank. 3 a 2. Record the repayment taansattion. If an amount box does not require an entry, leave it blark. Se (Record payment of interest ana principar)