accounting Problem 6

Problem 8-2A (Algo) Record notes payable and notes receivable (LOS-2) Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.3 million cash on October 1,2024, to provide working capital for anticipated expansion. Precision signs a one-year, 8% promissory note to Midwest Bank under a prearranged shortterm line of credit interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (0) the notes payable for Precision Castports and (D) the notes recelvable for Midwest Bank 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30,2025 , to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivabie for Midwest Bank. Record the adjusting entry for interest for Midwest Bank. Note: Enter debits before credits. Record the adjusting entry for interest for Precision Castparts. Note: Enter debits before credits. Record the issuance of the note by Precision Castparts. Note: Enter debits before credits. Record the receipt of cash at maturity for Midwest Bank. Note: Enter debits before credits. Record the repayment of the note and payment of interest at maturity for Precision Castparts. Note: Enter debits before credits. Record the acceptance of the note by Midwest Bank. Note: Enter debits before credits