Problem 5 Worth 3 pts.1/2 pt. for each account title and Interest amount
Groovy Swing is a retail store specializing in golf equipment and apparel. On February 1, 2014, the company borrows $250,000 cash from the bank with a six-month, 6% note payable.
Required: Prepare the companys necessary journal entries on February 1st and the note's maturity date.
Solution:
Date	Account	Debit	Credit
Feb. 1
Aug. 1