Problem $8-2$A $($Algo$)$ Record notes payable and notes receivable $($LO$8-2)$

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $$39$ million cash on October $1,2024,$ to provide working capital for anticipated expansion. Precision signs a one$-$year, $7\%$ promissory note to Midwest Bank under a prearranged short$-$term line of credit. Interest on the note is payable at maturity. Each company has a December $31$ year$-$end.

Required:

Prepare the journal entries on October $1,2024,$ to record $($a$)$ the notes payable for Precision Castparts and $($b$)$ the notes receivable for Midwest Bank.

Record the adjusting entry on December $31,2024,$ for $($a$)$ Precision Castparts and $($b$)$ Midwest Bank.

Prepare the journal entries on September $30,2025,$ 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.

Prepare the journal entries on October $1,2024,$ to record $($a$)$ the notes payable for Precision Castparts and $($b$)$ the notes receivable for Midwest Bank. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $$5\mathrm{.}5$ million should be entered as $5,500,000.)$

Journal entry worksheet

$1$

$2$

Record the issuance of the note by Precision Castparts.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$October $01,2024,,,],[,,,],[,,,],[,,,]]$