Question

On November 1, Year 1, a company borrows $40,000 cash from Community Savings and Loan. The company signs a three-month, 6% note payable. Interest is payable at maturity. The company's year-end is December 31. 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.) View transaction list Journal entry worksheet 2 3 Record the issuance of note. Note: Enter debits before credits. General Journal Debit Credit Date November 01 Record entry Clear entry View general journal

Answer 1

Date	Account Title	Debit	Credit
11/1/2019	Cash	$     40,000.00
	Notes Payable		$   40,000.00
12/31/2019	Interest Expense	$          400.00
	Interest Payable		$        400.00
	($40,000 x 6% x 2/12)
2/1/2019	Notes Payable	$     40,000.00
	Interest Payable (40,000*6%*3/12)	$          600.00
	Cash		$        600.00