Problem - Notes payable (12 pts)

32. (171). On September 1, 2009, George Hanby borrowed $300,000 from Fidelity Homestead and signed a 6%, one-year note payable, all due at maturity (therefore no monthly payments are involved, only one payment at maturity). Hanby makes adjusting entries and prepares financial statements only at year-end. Pay attention to dates and number of months in each year. Answer (a) thru (d3) below:

The worksheets above are presented for illustration only.

NOTE: a, b, c, and d3 below are numerical answer fields - enter whole numbers only, no decimals with zeroes. Also, DO NOT put dollar signs and make sure you put commas between the hundreds and thousands place, and between the hundred-thousands and millions place.

d1 and d2 below are text fields - enter account titles only, do not abbreviate.

For (c), overall liability includes principal plus interest.

(a) amount

(b) amount

(c) amount

Adjusting Entry:

(d1) debit account (text field)

(d2) credit account (text field)

(d3) debit/credit $amount