On June 1, Merando Company borrows $121,500 from First Bank on a 6-month, $121,500, 8% note.

(a)

	Your answer is correct.

Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	Cash	$121,500
	Note Payable		$121,500

Attempts: 1 of 3 used

(b)

	Your answer is correct.

Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	Interest Expense	$810
	Interest Payable		$810

(c)

Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 1