A Regier Home builder, which has a calendar year-end, borrowed $10,000 from a local bank on October 2, 2009. On that date, Regier’s chief executive signed a 9 percent, 150 day interest-bearing promissory note.
Prepare the appropriate journal entries in Regier’s accounting records on the following dates:
(a) October 2
(b) December 31
(c) The maturity date (indicate that date in the journal entry)