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Homework answers / question archive / Please help solve this in a table foe General Journal Entry   On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations

Please help solve this in a table foe General Journal Entry   On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations

Finance

Please help solve this in a table foe General Journal Entry

 

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico's year-end is December 31.

 

Required:

1.-3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies.

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Journal Entries:
Date Account Titles and Explanation Debit Credit
01-Aug-21 Cash  21000000  
        Notes Payable   21000000
  (To record issue of note for amount borrowed)    
       
31-Dec-21 Interest Expense ($21000,000 * 9%*5/12) 787500  
          Interest Payable   787500
  (To record interest expense accrued)    
       
31-Jan-21 Note Payable  21000000  
  Interest Payable 787500  
  Interest Expense  ($21,000,000 * 9%*1/12) 157500  
         Cash   21945000
  (To record payment of note at maturity)    

 

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