80.2K

Verified Solution

Link Copied!

please solve

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. 2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld, Enter you answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000. Journal entry worksheet 2 Record the adjusting entry for interest for Precision Castparts. Note, Anter debits before credits. Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. 2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field, Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) Journal entry worksheet Record the adjusting entry for interest for Midwest Bank. Notel Enter debits before credits

Answer & Explanation Solved by verified expert

See Answer