Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2018, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.

3. Prepare the journal entries on September 30, 2019, to record payment of the notes payable at maturity.

Record the repayment of the note at maturity for Precision Castparts.-

-Record the receipt of cash at maturity for Midwest Bank.