Question: (8 marks Question 3 On June 1, Pearl Ltd borrows $20,000 from their bank by signing a 2 month interest-bearing note. Prepare the necessary entries

(8 marks Question 3 On June 1, Pearl Ltd borrows $20,000 from their bank by signing a 2 month interest-bearing note. Prepare the necessary entries below associated with the note payable on the Pearl Ltd. Required: (a) Prepare the entry on June 1 when the note was issued. (b) Prepare any adjusting entries necessary on 30 June in order to prepare the month financial statements. Assume no other interest accrual entries have been made. (c) Prepare the entry to record payment of the note at maturity. Page 6 of 8

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