Use the information in E10-1 to complete the following requirements. E10-1 Many businesses borrow money during periods

Question:

Use the information in E10-1 to complete the following requirements.
E10-1
Many businesses borrow money during periods of increased business activity to fi nance inventory and accounts receivable. Target is one of America's largest general merchandise retailers. Each Christmas, Target builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, Target often collects cash from the sales several months after Christmas. Assume that on November 1, 2013, Target borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.0 percent payable at The accounting period ends December 31.
Required:
1. Give the journal entry to record the note on November 1, 2013.
2. Give any adjusting entry required on December 31, 2013.
3. Give the journal entry to record payment of the note and interest on the date, April 30, 2014, assuming that interest has not been recorded since December 31, 2013.
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