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

(a)

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

(b)

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