Question

Shamrock Company borrowed $27,600 on November 1, 2020, by signing a $27,600, 9%, 3-month note. Prepare Shamrock’s November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit

choose a transaction date

11/1/20 12/31/20 2/1/21

enter an account title enter a debit amount enter a credit amount

enter an account title enter a debit amount enter a credit amount

choose a transaction date

11/1/20 12/31/20 2/1/21

enter an account title enter a debit amount enter a credit amount

enter an account title enter a debit amount enter a credit amount

choose a transaction date

11/1/20 12/31/20 2/1/21

   enter an account title to record the transaction on February 1, 2018 enter a debit amount enter a credit amount

enter an account title to record the transaction on February 1, 2018 enter a debit amount enter a credit amount

enter an account title to record the transaction on February 1, 2018 enter a debit amount enter a credit amount

enter an account title to record the transaction on February 1, 2018 enter a debit amount enter a credit amount

Answer 1

Date	General journal	Debit	Credit
Nov. 1, 2020	Cash	27,600
	Note payable		27,600
	( To record issuance of note)

Interest payable on December 31, 2020 = Note payable x Interest rate x Time period/12

= 27,600 x 9% x 2/12

= $414

Date	General journal	Debit	Credit
Dec.31, 2020	Interest expense	414
	Interest payable		414
	( To record interest expense)

Interest payable on February 1, 2021 = Note payable x Interest rate x Time period/12

= 27,600 x 9% x 1/12

= $207

Date	General journal	Debit	Credit
Feb.1, 2021	Note payable	27,600
	Interest payable	414
	Interest expense	207
	Cash		28,221
	( To record note at maturity)

Kindly comment if you need further assistance. Thanks‼!