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different figures read through carefully Note Payable and Accrued Interest...

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Accounting

different figures read through carefully
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Note Payable and Accrued Interest Fairborne Company borrowed $600,000 on an 8%, interest-bearing note on October 1, 2019. Fairborne ends its fiscal year on December 31. The note was paid with interest on May 1,2020. Required: 1. Prepare the entry for this note on October 1, 2019 2019 Oct. 1 (Record issuance of note) 2. Prepare the adjusting entry for this note on December 31, 2019. 2019 Dec 31 (Record accrued interest) 3. Indicate how the note and the accrued interest would appear in the balance sheet at December 31,2019. 4. Prepare the entry to record the repayment of the note on May 1, 2020, If an amount box does not require an entry, leave it blank (Record payment of note and interest)

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