On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.7 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 9% promissory note. Interest is payable at maturity. Company B's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company B. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.7 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 9% promissory note. Interest is payable at maturity. Company B's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company B. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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