4 of 7 M106 Recording a Note Payable LO 102 The following in

4 (of 7) M10-6 Recording a Note Payable [LO 10-2] [The following information applies to the questions displayed below] Greener Pastures Corporation borrowed $1,700.000 on November 1, 2015. The note camed a 9 percent Interest rate with the principal and interest payable on June 1. 2016. (a) The note Issued on November1 b) The Interest accrual on December 31 References Section Break M2O-6 Recording a Note Payable LO 10-2) value 0.71 points

Solution

Journal entry :

Date	account & explanation	debit	credit
Nov 1,2015	Cash	1700000
	Notes payable		1700000
	(To record amount borrowed)
Dec 31,2015	Interest expense (1700000*9%*2/12)	25500
	Interest payable		25500
	(To record accured interest)