Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 8% 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: a. Prepare the journal entries on October 1, 2012, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. b. Record the adjustments on December 31, 2012, for (a) Precision Castparts and (b) Midwest Bank. c. Prepare the journal entries on September 30, 2013, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million cash on ...” 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
You Might be Interested in
Match each type of bond with its description. a. Secured Secured drop zone empty. b. Callable bonds Callable bonds drop zone empty. c. Convertible bonds Convertible bonds drop zone empty. d. Term Term drop zone empty. e. Serial bonds
Answers (1)
After eating four slices of pizza, vou are offered a fifth slice for free. You down down this fifth slice. Your refusal indicates that the: a. Marginal utility for four slices is negative b. Total utility for five slices is negative c.
Answers (1)
In order for the hitch ball to be secured properly, what should be the last part assembled?
Answers (1)
When is a physical inventory usually taken? when the company has its greatest amount of inventory and at the end of the company's fiscal year. when the company has its greatest amount of inventory. at the end of the company's fiscal year.
Answers (1)
Taylor Bank lends Guarantee Company $117,933 on January 1. Guarantee Company signs a $117,933, 9%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
Answers (1)
New Questions in Business
On May 1, 2018 ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on january 1 and july 1, for $1,406,500 plus accrued interest. The bonds mature on January 1,2024.
Answers (1)
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5, and the price of product Beta is $10.
Answers (1)
GHJ Inc. is investing in a major capital budgeting project that will require the expenditure of $16 million. The money will be raised by issuing $2 million of bonds, $4 million of preferred stock, and $10 million of new common stock.
Answers (1)
Which of the following components make up the income statement
Answers (1)
A partnership is a business owned by two or more people a. True b. False
Answers (1)