Required information [The following information applies to the questions displayed below.) Precision Castparts, a manufacturer of processed engine parts in the automotive and airline Industries, borrows $39.5 million cash on October 1, 2021, to provide working capital for anticipated expansion Precision signs a one-year, 8% 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. Required: 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.) No 1 Answer is complete but not entirely correct. Date General Journal Debit October 01, 2021 Cash 39,500.000 Notes Payable Credit slo 39,600,000 2 October 01, 2021 Interest Expense Interest Payable 2,370,000 2,370,000 Precision Castparts, a manufacturer of processed engine parts in the automotive and airline Industries, borrows $39.5 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 8% 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. 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.) View transaction list Journal entry worksheet Record the adjusting entry for interest for Precision Castparts. Note: Enter debits before credits General Journal Debit Credit Date December 31 2021 Precision Castparts, a manufacturer of processed engine parts in the automotive and airline Industries, borrows $39.5 milion cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 8% 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. 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.) View transaction list Journal entry worksheet > Record the repayment of the note at maturity for Precision Castparts. Note: Enter debits before credits Date General Journal Debit Credit September 30, 2022
