Aerospace Engineering borrows 40 million cash on November 1 2015
Aerospace Engineering borrows $40 million cash on November 1, 2015. Aerospace signs a six-month, 6% promissory note to First National Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year end.

Required:
1. Prepare the journal entries on November 1, 2015 to record
(a) The notes payable for Aerospace Engineering
(b) The notes receivable for First National Bank.
2. Record the adjusting entries on December 31, 2015 for
(a) Aerospace Engineering
(b) First National Bank.
3. Prepare the journal entries on April 30, 2016 to record payment of
(a) The notes payable for Aerospace Engineering
(b) The notes receivable for First National Bank.

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