PROBLEM 1 On April 1, Holton Company borrows $80,000 from West Bank by signing a 6-month, 6%. interest-bearing note. Instructions Prepare 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. (b) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made. Ans N/A, SO 2, Bloom AP, Dificulty Medium, Min 5, AACSR Analdic, AICPA BB Legal/Requlatory Perspective, AICPA FN: Measurement. AICPA PC: Problem Solving, IMA: FSA