Short-Term Note Payable Review Problem: On October 31, 2018, Detroit Company purchased a machine by signing a $50,000 promissory note with a 6% rate of interest. Both the principal and interest are due on April 30, 2019. Detroit has a December 31 st year-end.

1. Prepare the journal entry Detroit would make on October 31, 2018 when it purchases the machine.

2. Prepare the journal entry Detroit would make on December 31, 2018 to accrue interest on the note.

3. Prepare the journal entry Detroit would make on December 31, 2018 to record depreciation on the machine, assuming Detroit uses sum-of-the-years-digits depreciation with a 4 year useful life and $1,500 salvage value.

4. Prepare the journal entry that Detroit will record on April 30, 2019 when the note matures.