Assume that on Sept 1, 2021, General Mills bonowed $200,000 cash on a one-year note that required General Mills to pay 3 percent interest and $200,000 principal, both on August 31, 2022. 1. Prepare the journal entry to establish the note payable on September 1, 2021 2. Prepare the journal enty to record accmal of interest on December 31, 2021. 2. Prepare the journal entry to record acomal of interest on August 31, 2022. "1. Prepare the journal entry to record payment of the note plus payment of interest on August 31, 2022.
Assume that on Sept 1, 2021, General Mills bonowed $200,000 cash on a one-year note that required General Mills to pay 3 percent interest and $200,000 principal, both on August 31, 2022. 1. Prepare the journal entry to establish the note payable on September 1, 2021 2. Prepare the journal enty to record accmal of interest on December 31, 2021. 2. Prepare the journal entry to record acomal of interest on August 31, 2022. "1. Prepare the journal entry to record payment of the note plus payment of interest on August 31, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Hi! I'm trying to practice my practice problems for Accounting but I seem to always get stuck on preparing journal entries. How do I know which
![Assume that on Sept 1, 2021, General
Mills borrowed $200,000 cash on a one-year
note that required General Mills to pay 3.
percent interest and $200,000 principal, both
on August 31, 2022.
1. Prepare the journal entry to establish the
note payable on September 1, 2021
2. Prepare the journal entry to record
accmal of interest on December 31, 2021.
3. Prepare the journal enting to record accrual of
interest on August 31, 2022.
41. Prepare the journal entry to record
payment
of the note plus payment of interest on August 31, 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcd2d27a-56f0-42f1-82ee-dc77a8a42b09%2F90debc57-92dc-4672-a83c-87af3c3d1af5%2Fr90jbmc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that on Sept 1, 2021, General
Mills borrowed $200,000 cash on a one-year
note that required General Mills to pay 3.
percent interest and $200,000 principal, both
on August 31, 2022.
1. Prepare the journal entry to establish the
note payable on September 1, 2021
2. Prepare the journal entry to record
accmal of interest on December 31, 2021.
3. Prepare the journal enting to record accrual of
interest on August 31, 2022.
41. Prepare the journal entry to record
payment
of the note plus payment of interest on August 31, 2022.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education