FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six

Question

FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. Trico's year-end is December 31. Required: 1., 2.& 3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 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 Cabit Credit August 01, 2018 Record entry Clear entry View general journal

Explanation / Answer

Date Title Debit Credit August 01, 2018 Cash $20.2 Million Note payable $20.2 Million Date Title Debit Credit December 31, 2018 Interest expense ($20.2 Million * 6%*5/12) 0.505 Million Interest payable 0.505 Million Date Title Debit Credit January 31, 2019 Note payable $20.2 Million Interest expense ($20.2 Million * 6%*1/12) 0.101 Million Interest payable 0.505 Million Cash 20.806 Million

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