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On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.0 million cash to expand operations. The loan is made by Company
On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.0 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, 9% 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).) No 1 Date August 01 Cash Notes Payable 2 December 31 Interest Expense Interest Payable 3 January 31 Notes Payable Interest Expense Answer is not complete. General Journal Debit Credit 19,000,000 19,000,000 Interest Payable Cash 0000 712,500 712,500 1,900,000 142,500 855,000 19,855,000
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