90.2K

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. Prepare the journal entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round ntermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account leld. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) Journal entry worksheet 2 Record the repayment of the note at maturity for Precision Castparts. Fote: Enter debits before oredits. 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. Prepare the journal entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round termediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account eld. 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 receipt of cash at maturity for Midwest Bank. Notet Enter debits before credits

Answer & Explanation Solved by verified expert

See Answer