Question

E9-8 (Algo) Reporting Notes Payable and Calculating Interest Expense LO 9-3 South End is one of the world's most popular outdoor apparel companies. Assume that South End borrows $3.0 million from U.S. Bank and signs a note promising to pay back the $3.0 million in eight months, at which time South End also will pay any accrued interest. The interest rate on the note is 8% Required: 1. Prepare the journal entry South End will record when it signs the note and receives the cash. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).) View transaction list Journal entry worksheet A Record the eight-month note with an interest rate of 8%. Note: Enter debits before cred its. Transaction General Journal Credit Debit 01 Record entry Clear entry View general journal

Answer 1

In south-end General books - journal Journal entries bebit or credit transaction old 3,000,000 us bank acc... w 3,000,000 TO bills payable al Being a promissory note is signed in favour of us.bank), y 3,000,000 160.000 Bills payable al...m invest aja..m (3,000,000x8y. X812) 10 рак с (Being promissory note is settled through payment along with interein. 3,160,000

1 NOK 1. Though it is promissory note, It shall be entered in bills book itself . it is payable, it is envered in bills payable book 2. south end will not receive any cash as instead it has to pay cash to us banke