Question: On August 1, 2012, Trico Technologies, an aeronautic electronics company, borrows $20 million cash to expand operations. The loan is made by FirstBanc Corp. under

On August 1, 2012, Trico Technologies, an aeronautic electronics company, borrows $20 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term arrangement. Trico signs a six-month, 8% promissory note. Interest is payable at maturity. Trico's year-end is December 31.
Required:
1. Record the issuance of the note by Trico Technologies.
2. Record the appropriate adjustment for the note by Trico on December 31, 2012.
3. Record the payment of the note by Trico at maturity.

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