PROBLEM 1 On April 1, Holton Company borro interest-bearing note. 1. Holton Company borrows $80.000 from West Bank by signing a 6-month. 6%. Instructions pare the necessary entries below associated with the note payable on the books of Nolton Company (a) Prepare the entry on April 1 when the note was issued (0) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual Tinancial statements. Assume no other interest accrual entries have been made. Ans: N/A SO 2, Bloom: AP D utty Medium Min 5. AACSR Analve AICPA BB Lega Regulatory Perspective, AICPA FN: Measurement, AICPA PC. Problem Solving, IMA: FSA