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On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.2 million cash to expand operations. The loan is made by Company B
On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.2 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 8% promissory note. Interest is payable at maturity. Company A's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company A. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet < 1 2 3 Record the issuance of note. Note: Enter debits before credits. Date August 011 General Journal Debit Credit Journal entry worksheet < 1 2 3 Record the adjusting entry for interest. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the repayment of the note at maturity. Note: Enter debits before credits. Date January 31 General Journal Debit Credit Record entry Clear entry View general journal
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