Question

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.2 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, 6% 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 dollars, not in millions (le, 5 should be entered as 5,000,000).) Viewraction at Journal entry worksheet 23 Record the acceptance of note. Datit cred

Answer 1

		Debit	Credit
August 01,2021	Notes Receivable	20200000
	Cash		20200000
December 31,2021	Interest receivable	505000		=20200000*6%*5/12
	Interest revenue		505000
January 31,2022	Cash	20806000
	Interest receivable		505000
	Interest revenue		101000	=20200000*6%*1/12
	Notes Receivable		20200000