Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $ 3 9 million cash on October 1 , 2
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $ million cash on October to provide working capital for anticipated expansion. Precision signs a oneyear, promissory note to Midwest Bank under a prearranged shortterm line of credit. Interest on the note is payable at maturity. Each company has a December yearend. Required: Prepare the journal entries on October to record a the notes payable for Precision Castparts and b the notes receivable for Midwest Bank. Record the adjusting entry on December for a Precision Castparts and b Midwest Bank. Prepare the journal entries on September to record payment of a the notes payable for Precision Castparts and b the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Record the adjusting entry on December for a Precision Castparts and b Midwest Bank. Do not round intermediate calculations. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions, For example, $ million should be entered as Journal entry worksheet Record the adjusting entry for interest for Precision Castparts. Note: Enter debits before credits. tableDateGeneral Journal,Debit,CredittableDecember Interest Expense,,Interest Payable,,
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $ million cash on October to provide working capital for anticipated expansion. Precision signs a oneyear, promissory note to Midwest Bank under a prearranged shortterm line of credit. Interest on the note is payable at maturity. Each company has a December yearend.
Required:
Prepare the journal entries on October to record a the notes payable for Precision Castparts and b the notes receivable for Midwest Bank.
Record the adjusting entry on December for a Precision Castparts and b Midwest Bank.
Prepare the journal entries on September to record payment of a the notes payable for Precision Castparts and b the notes receivable for Midwest Bank.
Complete this question by entering your answers in the tabs below.
Record the adjusting entry on December for a Precision Castparts and b Midwest Bank. Do not round intermediate calculations. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions, For example, $ million should be entered as
Journal entry worksheet
Record the adjusting entry for interest for Precision Castparts.
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CredittableDecember Interest Expense,,Interest Payable,,
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started