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1. On October 1, Eder Fabrication borrowed $69 million and issued a nine-month promissory note. Interest was discounted at issuance at a 11% discount rate.

Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Record the issuance of the note

Event	General Journal	Debt	Credit
1	Cash	?
	?		?

Record the appropriate adjusting entry for the note at December 31.

Event	General Journal	Debt	Credit
2	Interest expense	?
	Discount on notes payable		?

2. On December 12, 2018, Pace Electronics received $24,400 from a customer toward a cash sale of $244,000 of diodes to be completed on January 16, 2019.

What journal entries should Pace record on December 12 and January 16? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the appropriate entry on December 12

Date	General Journal	Debt	Credit
December 12, 2018	?	?
	?		?

Record the appropriate entry on January 16

January 16, 2019	General Journal	Debt	Credit
		?
			?

4. During December, Rainey Equipment made a $694,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%.

Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the credit sale

Event	General Journal	Debit	Credit
1	Accounts receivable ?	?
	Sales revenue		694,000
	Sales taxes payable ?

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