Ask Question
6 September, 17:27

On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. Record the issuance of note. Record the adjustment for interest. Record the repayment of the note at maturity.

+4
Answers (1)
  1. 6 September, 20:09
    0
    The Journal entries are as follows:

    1. Issuance of note:

    Cash A/c Dr. $51,000

    To Note payable $51,000

    (To issuance of note)

    2. Adjustment for interest:

    Interest expense ($51,000 * 6% * 2/12) A/c Dr. $510

    To Interest payable A/c $510

    (To record the adjustment for interest)

    3. Repayment of note:

    Note payable A/c Dr. $51,000

    Interest payable A/c Dr. $510

    Interest expense ($51,000 * 6% * 1/12) A/c Dr. $255

    To cash A/c $51,765

    (To record the repayment of the note at maturity)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a three-month, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers