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.

Answer rating: 100% (QA)

Note Payable It is issued by the debtors to their creditors for compensating the accounts payable which they previously issued to creditors Notes paya... View the full answer