E$9-8($Algo$)$ Reporting Notes Payable and Calculating Interest Expense LO $9-3$

South End is one of the world's most popular outdoor apparel companies. Assume that South End borrows $$2\mathrm{.}3$ million from U$.$S$.$ Ba

and signs a note promising to pay back the $$2\mathrm{.}3$ million in nine months, at which time South End also will pay any accrued interest.

interest rate on the note is $8\%.$

Required:

Prepare the journal entry South End will record when it signs the note and receives the cash. $($If no entry is requlred for a

transaction$/$event$,$ select $"$No Journal entry requlred" In the first account fleld. Enter your answers In whole dollars not In millilon

$($l$.$e$.,1,000,000$ not $1\mathrm{.}0).)$

Journal entry worksheet

A

Record the nine$-$month note with an interest rate of $8\%.$