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this is all one question, please make it clear!!! Many businesses borrow money during periods of increased business activity to finance Inventory and accounts receivable.

this is all one question, please make it clear!!! image text in transcribed
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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 $7.6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 7.00 percent payable at maturity. The accounting period ends December 31. Required: 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on November 1; (b) impact of the adjusting entry on December 31, 2018; and (c) the payment of the note and interest on April 30, 2019, on the accounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to assets, liabilities, or stockholders equity with a minus sign.) Assets Liabilities Date November 1, 2018 December 31, 2018 April 30, 2019 Liabilities Stockholders' Equity View transaction list Journal entry worksheet 1 2 3 Record the borrowing of $6,500,000. Note: Enter debits before credits. General Journal Date Nov 01, 2018 Debit Credit Record entry Clear entry View general journal Journal entry worksheet

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