Question: Problem 1 Note Payable 15 minutes 8 marks Hogwarts Inc. entered into the following transactions during 2020: December 1 Borrowed $75,000 cash from Gringotts Bank

Problem 1 Note Payable 15 minutes 8 marks

Hogwarts Inc. entered into the following transactions during 2020:

December 1

Borrowed $75,000 cash from Gringotts Bank in exchange for a 60-day, 5% note payable.

December 31

Recorded any required adjusting entries for the accrual of interest on notes payables.

Feb 1

Hogwarts Inc. pays the note to Gringotts Bank in full at maturity.

Required:

Prepare the journal entries for Hogwarts Inc. to record the transactions above. Round any cents to two decimal points.

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