TARVON Inc. acquired $50,000 cash by issuing a promissory note to the National Bank on May 1, 2016. Duval issued a promissory note with a one-year term and a 6% annual interest rate.
Required
Prepare the general journal entries to record:
a. The issue of the note on May 1, 2016.
b. Accrued interest on December 31, 2016.
c. Accrued interest on April 30, 2017.
d. Cash paid to settle the amount of interest payable on April 30, 2017.
e. Cash paid to settle the principal balance of the obligation to the bank on April 30, 2017.