[The following information applies to the questions displayed below.]

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.3 million cash on October 1, 2018, to provide working capital for anticipated expansion. Precision signs a one-year, 7% 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.

value: 5.88 points

Required information

Required:

1. Prepare the journal entries on October 1, 2018, 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 (i.e., $5.5 million should be entered as 5,500,000).)

References

eBook & Resources

General JournalDifficulty: 3 HardLearning Objective: 08-02 Account for notes payable and interest expense.

Check my work

3.

value: 5.88 points

Required information

2. Record the adjustments on December 31, 2018. (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 (i.e., $5.5 million should be entered as 5,500,000).)

References

eBook & Resources

General JournalDifficulty: 3 HardLearning Objective: 08-02 Account for notes payable and interest expense.

Check my work

4.

value: 5.88 points

Required information

3. Prepare the journal entries on September 30, 2019, to record payment of the notes payable at maturity. (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 (i.e., $5.5 million should be entered as 5,500,000).)