ezto.mheducation.com Modest Tops for LDS Sister Missiorn Homework #9 (Chpt 10) v
ID: 2551185 • Letter: E
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ezto.mheducation.com Modest Tops for LDS Sister Missiorn Homework #9 (Chpt 10) value: 2.14 points E10-2 Recording a Note Payable through Its Time to Maturity [LO 10-2] Many businesses borrow money during periods of increased business activity to finance inventory and accounts recelvable. Target Corporation is one of America's largest general merchandise retailers. Each Christmas, Target builds up its inventory to meot the needs of Christmas shoppers. A large portion of cash from sales several months after credit. As a Christmas sales are on Christmas. Assume that on November 1, 2015, Target borrowed $7.9 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.50 percent payable at maturity. The accounting period ends December 31. Required: 1,283. Complete the required jounal entries to record the note on November 1, 2015, interest on the maturity date, April 30, 2016, assuming that interest has not been recorded since December 31, 2015. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the borrowing of $7,900,000. 2 Record the interest accrued on the note payable as of December 31, 2015 Record the repayment of the note plus interest on the maturity date 3 Credit Note: journal entry has been entered Record ent Clear entrv View general lournalExplanation / Answer
E10-2:
E10-3:
Total Labor Cost = 490,000+35035 +3405 = 528,440
Date Account Titles Debit Credit Nov 1,2015 Cash 7,900,000 Note Payable 7,900,000 Dec 31,2015 Interest Expense 111916.67 Interest Payable 111916.67 [7,900,000*8.5%*2/12] April 30,2016 Note Payable 7,900,000 Interest Payable 111916.67 Interest Expense[7,900,000*8.5%*4/12] 223833.33 Cash 8,235,750
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