Promissory note journal entry examples

Required Information Problem 8-2B Record notes payable and notes receivable (L08-2) [The following information applies to the questions displayed below.] Eskimo Joe's, designer of the world's second best-selling T-shirt (fust behind Hard Rock Cafe), borrows $20.5 million cash on November 1, 2021. Eskimo Joe's signs a six-month, 9% promissory note to Stillwater National 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. Problem 8-2B Part 1 Required: 1. Prepare the journal entries on November 1, 2021, to record the issuance of the note. (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.)
We were unable to transcribe this image
1. Prepare the Journal entries on November 1, 2021. to record the issuance of the note. (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.) View transaction list Journal entry worksheet Record the acceptance of the note by Stillwater National Bank. Note: Enter debits before credits. Date General Journal Debit Credit November 01, 2021 Record entry Clear entry View general journal
Problem 8-2B Part 2 2. Record the adjustments on December 31, 2021, for (a) Eskimo Joe's and (b) Stillwater National 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.) View transaction list Journal entry worksheet Record the adjusting entry for interest for Eskimo Joe's. Note: Enter debits before credits, Date General Journal Debit Credit December 31, 2021 ..........Rerod.entre............ Clearent............... View.general mal......
2. Record the adjustments on December 31, 2021, for (a) Eskimo Joe's and (b) Stillwater National 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.) View transaction list Journal entry worksheet Record the adjusting entry for interest for Stillwater National Bank. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal
3. Prepare the journal entry on April 30, 2022, to record payment of the notes payable at maturity. (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.) View transaction list Journal entry worksheet Record the repayment of the note at maturity for Eskimo Joe's. Note: Enter debits before credits, Date General Journal Debit Credit April 30, 2022 .......Record entry........... W T TT . ... ............Clear entry ...View.generalioumal....
3. Prepare the journal entry on April 30, 2022, to record payment of the notes payable at maturity. (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.) View transaction list Journal entry worksheet Record the receipt of cash at maturity for Stillwater National Bank. Note: Enter debits before credits. Date General Journal Debit Credit April 30. 2022 Record entry Clear entry View general journal