E$10-1($Algo$)$ Determining Financial Statement Effects of Transactions Involving Notes Payable $[$LO $10-2]$

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mitt Corporation builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mitt Corporation sales are on credit. As a result, Mitt Corporation often collects cash from its sales several months after Christmas. Assume on November $1,2024,$ Mitt Corporation borrowed $$6\mathrm{.}3$ million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was $9\mathrm{.}50$ percent payable at maturity. The accounting period ends December $31.$

Required:

Indicate the accounts, amounts, and effects of the:

a$.$ issuance of the note on November $1$;

b$.$ impact of the adjusting entry on December $31,2024$; and

c$.$ the payment of the note and interest on April $30,2025,$ on the accounting equation.

If a transaction affects a temporary account, include the account name under "Temporary Accounts" and the financial effect under $"$NI$."$ Do not enter an amount under "Stockholders' Equity" for these transactions; their impact on stockholders' equity will occur later when the temporary accounts are closed at year$-$end. Do not enter No Effect $($NE$)$ or zero for any cells without an effect for each transaction despite what may be shown in textbook demonstration cases as these cells should be left blank.

Note: Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to Assets, Liabilities, Stockholders' Equity, or Net Income with a minus sign.