Question: On May 31, Microchip Company borrows $50,000 and issues a six-month, 9% note, due on November 30. Interest is payable at maturity. Instructions (a) Prepare

On May 31, Microchip Company borrows $50,000 and issues a six-month, 9% note, due on November 30. Interest is payable at maturity. Instructions (a) Prepare the entry on May 31. (b) Prepare the adjusting entry on June 30, Microchips year-end. (c) Prepare the entry at maturity, assuming monthly adjusting entries have not been made since June 30. (d) What is the total financing cost (interest expense)?

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