Eskimo Joe’s, designer of the world’s second best-selling T-shirt (just behind Hard Rock Cafe), borrows $19.7 million cash on November 1, 2021. Eskimo Joe’s signs a six-month, 9% promissory note to Stillwater National 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.   3. Prepare the journal entry on April 30, 2022, to record payment of the notes payable at maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) Record the repayment of the note at maturity for Eskimo Joe's.     Date General Journal Debit Credit April 30, 2022                                               Record the receipt of cash at maturity for Stillwater National Bank.     Date General Journal Debit Credit April 30, 2022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Eskimo Joe’s, designer of the world’s second best-selling T-shirt (just behind Hard Rock Cafe), borrows $19.7 million cash on November 1, 2021. Eskimo Joe’s signs a six-month, 9% promissory note to Stillwater National 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.

 

3. Prepare the journal entry on April 30, 2022, to record payment of the notes payable at maturity. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)

  • Record the repayment of the note at maturity for Eskimo Joe's.
 
 
Date General Journal Debit Credit
April 30, 2022      
       
       
       
       
       
  • Record the receipt of cash at maturity for Stillwater National Bank.
 
 
Date General Journal Debit Credit
April 30, 2022      
       
       
       
       
       
 

 

 
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