On Septèmber 1, 2021, Trinoma Entertainment borrowed P24,000,000 cash to fund à new Fun Park. The loan was granted by Solid Bank under a noncommitted short-term line of credit arrangement. Trinoma issued a 9-month, 12% promissory note. Interest was payable at maturity. The fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Trinoma. 2. Prepare the appropriate adjusting entry for. the note on December 31, 2021. 3. Prepare the journal entry for the payment of the note at
On Septèmber 1, 2021, Trinoma Entertainment borrowed P24,000,000 cash to fund à new Fun Park. The loan was granted by Solid Bank under a noncommitted short-term line of credit arrangement. Trinoma issued a 9-month, 12% promissory note. Interest was payable at maturity. The fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Trinoma. 2. Prepare the appropriate adjusting entry for. the note on December 31, 2021. 3. Prepare the journal entry for the payment of the note at
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3.. Answer what is required of the problem.
Transcribed Image Text:On September 1, 2021, Trinoma Entertainment borrowed
P24,000,000 cash to fund a new Fun Park. The loan was
granted by Solid Bank under a noncommitted short-term line
of credit arrangement.
Trinoma issued a 9-month, 12% promissory note. Interest
was payable at maturity. The fiscal period is the calendar year.
Required:
1. "Prepare the journal entry for the issuance of the note by
Trinoma.
2. Prepare the appropriate adjusting entry for. the note on
December 31, 2021.
3. Prepare the journal entry for the payment of the note at
maturity.
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