Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
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- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2024, 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 company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries on October 1, 2024, to record (a) the notes…Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries on October 1, 2024, to record (a) the…
- Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.7 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% 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. Required: 1. Prepare the journal entries on October 1, 2021, to record the issuance of the note Record the issuance of the note by Precision Castparts. Record the acceptance of the note by Midwest Bank. Note: Enter debits before credits. Date General Journal Debit Credit October 01, 2021Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.1 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Precision Castparts has a December 31 year- end Required: 1. How will the issuance of the note payable affect the financial statements of Precision Castparts on October 1, 2024? 2. How will the accrued interest on the note payable affect the financial statements of Precision Castparts at the end of the fiscal year (December 31, 2024)? 3. How will the repayment of the note and interest on September 30, 2025, affect the financial statements of Precision Castparts? Note: Amounts to be deducted should be indicated by a minus sign. Enter your answers in dollars, not in millions (i.e., $5.5 million should be entered as $5,500,000).…Blanton Plastics, a household plastic product manufacturer, borrowed $25 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 9% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’s fiscal period is the calendar year. Required: Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’s receivable on October 1, 2024. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 9% is the bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2024, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the…
- Blanton Plastics, a household plastic product manufacturer, borrowed $22 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm's fiscal period is the calendar year. Required: 1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank's receivable on October 1, 2024. 2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2025. 3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% is the bank's stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2024, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the…Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2018, toprovide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&TBank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’sfiscal period is the calendar year.Required:1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’sreceivable on October 1, 2018.2. Prepare the journal entries by both firms to record all subsequent events related to the note through January31, 2019.3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% isthe bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterestbearing note by Blanton Plastics on October 1, 2018, the adjusting entry at December 31, and payment of thenote at maturity. (b) What would be the…Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.7 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% 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. 2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest 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.) Journal entry worksheet Record the adjusting entry for interest for Precision Castparts. Record the adjusting entry for interest for Midwest Bank. Note: Enter debits before credits. Date General…
- 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. Record the issuance of the note by Trico Technologies.2. Record the appropriate adjustment for the note by Trico on December 31, 2021.3. Record the payment of the note by Trico at maturity.On August 1, 2024, Trico Technologies, an aeronautic electronics company, borrows $19.3 million cash to expand operations. The loan Is made by FirstBanc Corporation under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. FirstBanc Corporation's year-end is December 31. Required: 1. to 3. Record the necessary entries in the Journal Entry Worksheet below for FirstBanc Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not millions (l.e. 5.5 million should be entered as 5,500,000).) No 1 2 3 Date August 01, 2024 Cash Notes Payable December 31, 202 Interest Expense Interest Payable January 31, 2025 Notes Payable Interest Payable Interest Expense Cash Answer is not complete. General Journal **** X XXXX Debit 19,300,000 723,750✔ 19,300,000 X 723,750 x 144,750 x Credit 19,300,000 723,750 20,168,500On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.0 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. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)