(Prepare a single compound entry for this transaction. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date

Accounts and Explanation

Debit

Credit

2018

Mar. 1

Requirements

1.	Record the $ 900 comma 000$900,000 note payable on MarchMarch 1, 20172017.
2.	Record the entry to accrue interest due on the note at DecemberDecember 3131, 20172017.
3.	Record the entry DraperDraper would make to record the payment to the bank on MarchMarch 1, 20182018.

Draper Consulting performs systems consulting and also sells accounting software.

DraperDraper

Consulting believes the company will need to borrow

$ 900 comma 000$900,000

in order to expand operations.

DraperDraper

consults the bank and secures a

1010%,

sixsix-year

note on

MarchMarch

1,

20172017.

DraperDraper

must pay the bank principal in

sixsix

equal installments plus interest annually on

MarchMarch