Seved E10-2 Recording a Note Payable through Its Time to Maturity [LO 10-2) Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example. Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.2 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 900 percent payable at maturity The accounting period ends December 31 Required: points 1,2& 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, whole dollars. If no entry is assuming that interest has not been recorded since December 31, 2018. (Enter your answers in required for a transaction/event, select "No Journal Entry Required" in the first account field) eBook Print View transaction list Reterences Journal entry worksheet Record the borrowing of $6,200,000. Note: Enter debits before credits General Journal Debit Credit Nov 01, 2018 E10-2 Recording a Note Payable through Its Time to Maturity [LO 10-2 4 Many businesses borrow money during periods of Increased business activity to finance inventory and accounts receivable. For example, Mitt builds up its inventory to meet the needs of retailers selling to Christmas shoppers A large portion of Mitt's sales are on credit. As a result Mitt often collects cash from its sales several months after Christmas Assume on November 1, 2018, Mitt borrowed $6 2 million cash from Metropolitan Bank and signed a promissory note that matures in six months The interest rate was 900 percent payable at maturity The accounting period ends December 31 Re ed: 1.2& 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019. assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journel Entry Required" in the first account field.) Pyint View transaction list References Journal entry worksheet Record the interest accrued on the note payable as of December 31 2018 Note: Enter debits before credits Dec 31, 2018 E10-2 Recording a Note Payable through Its Time to Maturity [LO 10-2] 4 Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, itt builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt's sales are on credit. As a result, Mitt often collects cash from its sales several months after Christmas. Assume on November 1, 2018, Mitt borrowed $6.2 milion cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 9 00 percent payable at maturity The accounting period ends December 31 points quired: 1. 2 & 3. Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019 assuming that interest has not been recorded since December 31, 2018. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) eBook Print View transaction list References Journal entry worksheet Record the repayment of the note plus interest on the matunity date Note: Enter debits before credits al Apr 30, 2019
