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value: 3.00 points E10-1 Determining Financial Statement Effects of Transactions Involving Notes Payable [LO 10-2]...

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value: 3.00 points E10-1 Determining Financial Statement Effects of Transactions Involving Notes Payable [LO 10-2] Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Target Corporation is one of America's largest general merchandise retailers. Eacth Christmas, Target builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, Target often collects cash from the sales several months after 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 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on November1 (b) impact of the adjusting entry on December 31, 2015; and (c) the payment of the note and interest on April 30, 2016, on the aocounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to account balances with a minus sign.) Date Assets litics Stockholders' Equity November 1, 2015 December 31, 2015 April 30, 2016

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