Required information (The following information applies to the questions displayed below) Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $396 million cash on October 1, 2021, 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 firm has a December 31 year-end. 3. Prepare the journal entries on September 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 1. Record the repayment of the note at maturity for Precision Castparts. Note Enter debits before credita. Date General Journal Debit Credit September 30, 2022 nterest Expense Interest Payable Notes Payable Cash
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Please answer both entries
![Required information
(The following information applies to the questions displayed below]
Precisiori Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $396
million cash on October 1, 2021, 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 firm has a December 31 year-end.
3. Prepare the journal entries on September 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
2
Record the repayment of the note at maturity for Precision Castparts.
Note Enter debits before credits.
Date
General Journal
Debit
Credit
September 30, 2022 Interest Expense
Interest Payable
Notes Payable
Cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e32f66d-09c4-42e8-ae49-7bf524a7c65f%2Fefc0a196-5e6c-4172-8112-a98c1da710ab%2Fdjta9hj_processed.jpeg&w=3840&q=75)
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