Indicate the accounts amounts and effects of the a issuance

Indicate the accounts, amounts, and effects of the (a) issuance of the note on November 1; (b) impact of the adjusting entry on December 31, 2015; and (c) the payment of the note and interest on April 30, 2016, on the accounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to account balances with a minus sign.)

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. General Harbor Corporation is one of America’s largest general merchandise retailers. Each Christmas, General Harbor builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, General Harbor often collects cash from the sales several months after Christmas. Assume that on November 1, 2015, General Harbor borrowed $6.9 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.00 percent payable at maturity. The accounting period ends December 31.

Chrome- Check Your Work O ezto.mheducation.com/hm.tpx 16.66 polnts Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. General Harbor Corporation is one of America\'s largest general merchandise retailers. Each Christmas, General Harbor builds up its inventory to meet the needs of Christmas shoppers. A large portion of Christmas sales are on credit. As a result, General Harbor often collects cash from the sales several months after Christmas. Assume that on November 1, 2015, General Harbor borrowed $6.9 million cash from Metropolitan Bank and signed a promissory note that matures in six months. The interest rate was 8.00 percent payable at maturity. The accounting period ends December 31. Required 1. Indicate the accounts, amounts, and effects of the (a) issuance of the note on November 1: (b) impact of the adjusting entry on December 31, 2015, and (c) the payment of the note and interest on April 30, 2016, on the accounting equation. (Do not round intermediate calculations. Enter your answers in whole dollars. Enter any decreases to account balances with a minus sign.) Answer is not complete. Date Assets Liabilities November 1, 2015 December 31 2015 April 30, 2016 Cash 6,900,000Note Payable 6,900,000Contributed Capital Retained Earnings 6,900,000Retaied Earnings Cash Interest Payable 92,000 7,176,000Note Payable 184,000 3:20 R

Solution

Solution:

Date	Assets	=	Liabilities	Stockholders\' Equity
November 1,2015	Cash	$6,900,000.00		Note Payable	$6,900,000.00		$0.00
December 31,2015		$0.00		Interest payable	$92,000.00	Interest Expense	-$92,000.00
April 30,2016	Cash	-$7,176,000.00		Note Payable	-$6,900,000.00	Interest Expense	-$184,000.00
			Interesy Payable	-$92,000.00