Question

A8

Saved A-8 1 Exercise 8-2A Record notes payable (LO8-2) On November 1, 2021, Aviation Training Corp. borrows $54,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 7% note payable. Interest is payable at maturity. Aviation's year-end is December 31. 1.28 points Required: 1-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) eBook View transaction list View journal entry worksheet Hint Credit Debit General Journal Date No 54,000 November 01, 2021 Cash 1 Print 54,000 Notes Payable December 31, 2021 Interest Expense References

Answer 1

(1)-Journal entry to record the note payable

Date	General Journal	Debit ($)	Credit ($)
November 01, 2021	Cash A/c	54,000
	To Notes Payable A/c		54,000
	[Being the journal entry passed to record the receipt of notes payable of $54,000]

(2)-Journal entry to record the interest expense

Date	General Journal	Debit ($)	Credit ($)
December 31, 2021	Interest Expense A/c	630
	To Interest Payable A/x [$54,000 x 7.00% x 2/12]		630
	[Being the journal entry passed to record the interest expense for 2 months] [$54,000 x 7.00% x 2/12)