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TB Problem 13-130 (Static) Hot Springs Marine borrowed... Hot Springs Marine borrowed $20 million cash on December 1, 2024, to provide working capital for year-end
TB Problem 13-130 (Static) Hot Springs Marine borrowed... Hot Springs Marine borrowed $20 million cash on December 1, 2024, to provide working capital for year-end inventory. Hot Springs Marine issued a 4-month, 9% promissory note to Third Bank under a prearranged short-term financing arrangement. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: Prepare the journal entries to record (a) the issuance of the note by Hot Springs Marine and (b) Third Bank's receivable on December 1, 2024. Prepare the journal entries by both firms to record all subsequent events related to the note through March 31, 2025
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