The face value of a company's commercial paper borrowings (loan) at December 31 was $6,000,000. This...

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The face value of a company's commercial paper borrowings (loan) at December 31 was $6,000,000. This six-month loan originated on September 1. a. Prepare the journal entry for issuance of the loan on September 1, assuming that the loan is discounted at 5.7%. Hint: Discount on Note Payable is equal to 6 months of interest. b. Prepare the adjusting entry at December 31. Amortize the discount on the note using the straight-line method. c. Prepare the entry to repay the loan on February 28 of the following year. d. Calculate the market rate of the loan. Date a. Sept. 1 Account Name b. Dec. 31 To record issuance of the loan. To record adjusting entry at year-end. c. Feb. 28 To record repayment of the loan. Dr. Cr. The face value of a company's commercial paper borrowings (loan) at December 31 was $6,000,000. This six-month loan originated on September 1. a. Prepare the journal entry for issuance of the loan on September 1, assuming that the loan is discounted at 5.7%. Hint: Discount on Note Payable is equal to 6 months of interest. b. Prepare the adjusting entry at December 31. Amortize the discount on the note using the straight-line method. c. Prepare the entry to repay the loan on February 28 of the following year. d. Calculate the market rate of the loan. Date a. Sept. 1 Account Name b. Dec. 31 To record issuance of the loan. To record adjusting entry at year-end. c. Feb. 28 To record repayment of the loan. Dr. Cr.

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