MSI Inc - ALL ENTRIES FOR MSI ONLY) KEY for Accounting Component Assets = A Liabilities Stockholders' Equity = SE Accounting Component Account Debit (OR) Credit (CR) On May 1st 2018, MSI Inc borrows $300,000 from HBL Inc by signing a 10 month note, 7.5% note. Record the entry. On December 31st record the adjusting entry accruing the interest for those pertinent months? On March 1st, 2019 MSI pays the principal and interest to HBL Inc. On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 98. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. What is the total cost of borrowing? TOTAL COST OF BORROWING = Account Accounting Component Debit (DR) Credit (CR) On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. What is the total cost of borrowing? 3 TOTAL COST OF BORROWING = 4 On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds. On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above. 6 On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the payment of interest and redemption of the bonds