North Face is one of the world's most popular outdoor apparel companies. Assume that North Face borrows $2 million from U.S. Bankand signs a note promising to pay back the $2 million in nine months, at which time North Face also will pay any accrued interest. Theinterest rate on the note is 8 percent.Required:1. Prepare the journal entry North Face will record when it signs the note and receives the cash.2. Prepare the journal entry that North Face will record when it pays off the note and any accrued interest after nine months.Note: For all requirements. If no entry is required for a transaction/event, select "No journal entry required" in the first accountfield. Enter your answers in whole dollars not in millions (I.e., 1,000,000 not 1.0).View transaction llestJournal entry worksheet12Record the nine-month note with an interest rate of 8%.Note: Enter debits before credits.Transaction01Record entryGeneral JournalClear entryDebitCreditView general Journal

NOTES PAYABLE Notes Payable is a Written Promissory Note. Notes Payable is Liability in Nature.…

Answered: North Face is one of the world's most…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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