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. Trico's year-end is December 31 Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies (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 (ie. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet Record the issuance of note. Note: Enter debits before credits Date General Journal Debit Credit

Answer 1

Date	General Journal	Debit	Credit
Aug 1, 2021	Cash	19.5 Million
	Note payable		19.5 Million
Dec 31, 2021	Interest expenses ($19.5 Million * 8% * 5/12)	$0.65 Million
	Interest payable		$0.65 Million
Jan 31, 2022	Note payable	19.5 Million
	Interest expenses ($19.5 Million * 8% * 1/12)	$0.13 Million
	Interest payable	$0.65 Million
	Cash		$20.28 Million

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