Problem 8-2A Record notes payable and notes receivable (LO8-2)

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Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.1 million cash on October 1, 2021, 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.

1. Prepare the journal entries on October 1, 2021, to record the issuance of the note. (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, $5.5 million should be entered as 5,500,000.)

Date	General Journal	Debit	Credit
October 01, 2021

2) Record the acceptance of the notes by midwest bank

Date	General Journal	Debit	Credit
October 01, 2021

2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank. (Do not round intermediate calculations. 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, $5.5 million should be entered as 5,500,000.)

3)

Date	General Journal	Debit	Credit
December 31, 2021

Record the adjusting entry for interest for Midwest Bank

Date	General Journal	Debit	Credit
December 31, 2021

3. Prepare the journal entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round intermediate calculations. 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, $5.5 million should be entered as 5,500,000.)

Date	General Journal	Debit	Credit
September 30, 2022

Record the receipt of cash at maturity for Midwest Bank

Date	General Journal	Debit	Credit
September 30, 2022