Question

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.5 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 8% promissory note. Interest is payable at maturity. FirstBanc Corp.'s year-end is December 31 Required: 1-3. Record the necessary entries in the Journal Entry Worksheet below for FirstBanc Corp. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollers, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet Record the acceptance of note. Note: Enter debits before credits Date General Journal Debit Credit August 01, 2021 Record entry Clear entry View general journal

Answer 1

August 01,2021	Notes Receivable	19500000
	Cash		19500000
Dec 31,2021	Interest Receivable	650000		=19500000*8%*5/12
	Interest revenue		650000
January 31,2022	Cash	20280000
	Interest Receivable		650000
	Interest revenue		130000	=19500000*8%*1/12
	Notes Receivable		19500000