1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10% interest payable at maturity. Metro's fiscal year ends on December 31. (2) Metro recorded accrued interest on December 31, 20x1. (3) Metro received the promissory note on the March 1, 20x2 due date. Required: prepare the appropriate journal entries.

1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10% interest payable at maturity. Metro's fiscal year ends on December 31. (2) Metro recorded accrued interest on December 31, 20x1. (3) Metro received the promissory note on the March 1, 20x2 due date. Required: prepare the appropriate journal entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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