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Many businesses borrow money during periods of increased business activity to finance inventory and accounts...

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Accounting

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For
example, Mattel builds up its inventory to meet the needs of retailers selling to Christmas shoppers. A large portion of Mattel's
sales are on credit. As a result, Mattel often collects cash from its sales several months after Christmas. Assume on November 1,
2021, Mattel borrowed $6 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The
interest rate was 8.0 percent payable at maturity. The accounting period ends December 31.
Required:
Indicate the accounts, amounts, and effects of the (a) issuance of the note on November 1 ; (b) impact of the adjusting entry on
December 31,2021; and (c) the payment of the note and interest on April 30,2022, on the accounting equation. (Do not round
intermediate calculations. Enter your answers in whole dollars. Enter any decreases to assets, liabilities, or stockholders
equity with a minus sign.)
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