Gardiner Manufacturing, Inc. borrowed $ 950,000 by issuing an 8- month note on July 1 of the current year. The note is due on March 1 of the following fiscal year. The short- term note carries a 6% annual interest rate, with interest due at maturity. The company’s fiscal year ends on December 31.
Required
a. Prepare the journal entry to record the issuance of the note payable.
b. Prepare the journal entry required at year- end to record the interest accrual.
c. Prepare the journal entry to record the payment of the note at maturity.