Question

I need help with writing the journal entry. Each picture I posted is a different journal entry that I need to write...I included the numbers for each one. The pictures are legible on my computer.

Required information [The following information applies to the questions displayed below.) Eskimo Joe's, designer of the world's second best-selling T-shirt (just behind Hard Rock Cafe), borrows $20.2 million cash on November 1, 2021. Eskimo Joe's signs a six-month, 9% promissory note to Stillwater National Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. Required: 1. Prepare the journal entries on November 1, 2021, to record the issuance of the note. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet < 1 2 Record the issuance of the note to Eskimo Joe's. Note: Enter debits before credits. Date General Journal November 01, 2021 Debit Credit Record entry View general journal Clear entry

Answer 1

Answer -

Step - (1) - Information Given -

Eskimo Joe's, borrows $20.2 million cash on November 1, 2021.

Eskimo Joe's signs a six-month, 9% promissory note to Stillwater National Bank under a prearranged short-term line of credit.

Interest on the note is payable at maturity. Each firm has a December 31 year-end.

.

Step - (2) -

Journal Entries in the books of -- Eskimo Joe's

Date	General Journal	Debit ($)	Credit ($)
November 1, 2021	Cash Note Payable (To record note payable)	20200000 -	- 20200000
December 31, 2021	Interest Expense [$20200000 * 9% * 2/12] Interest Payable (To record accrued interest for 2 months)	303000 -	- 303000
April 30, 2022	Interest Expense [$20200000 * 9% * 4/12] Interest Payable Note Payable Cash (To record payment of note payable plus interest)	606000 303000 20200000 -	- - - 21109000
Total		41612000	41612000

.

Step - (3) -

Journal Entries in the books of -- Stillwater National Bank

Date	General Journal	Debit ($)	Credit ($)
November 1, 2021	Notes Receivable Accounts Receivable (To record acceptance of note)	20200000 -	- 20200000
December 31, 2021	Interest Receivable Interest Income [$20200000 * 9% * 2/12] (To record accrued interest for 2 months)	303000 -	- 303000
April 30, 2022	Cash Interest Income [$20200000 * 9% * 4/12] Interest Receivable Notes Receivable (To record collection of notes receivable plus interest)	21109000 - - -	- 606000 303000 20200000
Total		41612000	41612000