Question: Prepare entries for interest-bearing notes. (LO2) Super Tech Ltd borrowed $24 000 on an 8-month, 4% note from a financial institution to extend the company’s

Prepare entries for interest-bearing notes. (LO2) Super Tech Ltd borrowed $24 000 on an 8-month, 4% note from a financial institution to extend the company’s operation. The money was borrowed on 1 May 2022.

Required

(a) Prepare the entry to record the receipt of the funds from the loan.

(b) Prepare the entry to accrue the interest on 31 May.

(c) Assuming adjusting entries are made at the end of each month, what is the balance in the interest payable account at 31 December 2022?

(d) Prepare the entry required on 1 January 2023 when the loan is paid back.

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