Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest 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
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Requlred Information
(The following information applies to the questions displayed below]
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7
million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9%
promissory note to Midwest 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 entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round
Intermedlate calculations. If no entry ls requlred for a transaction/event, select "No Journal Entry Requlred" In the first account
fleld. Enter your enswers In dollars, not In mllllons. For example, $5.5 milon should be entered as 5,500,000.)
View transaction list
Journal entry worksheet
21
Record the receipt of cash at maturity for Midwest Bank.
Note Entr delits berire cedit
Date
General Journal
Detat
Credit
September 30. 2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d601f64-088b-4fac-bdc0-28942335e730%2F0929bf5d-df20-4640-90e1-c0f60ff8d8d4%2Fm1867eq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Requlred Information
(The following information applies to the questions displayed below]
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7
million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9%
promissory note to Midwest 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 entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round
Intermedlate calculations. If no entry ls requlred for a transaction/event, select "No Journal Entry Requlred" In the first account
fleld. Enter your enswers In dollars, not In mllllons. For example, $5.5 milon should be entered as 5,500,000.)
View transaction list
Journal entry worksheet
21
Record the receipt of cash at maturity for Midwest Bank.
Note Entr delits berire cedit
Date
General Journal
Detat
Credit
September 30. 2022
Transcribed Image Text:Required Informetion
(The following information applies to the questions displayed below.)
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.7
million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9%
promissory note to Midwest 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 entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round
Intermedlate calculations. If no entry Is requlred for a transacetion/event, select "No Journal Entry Required" In the first account
fleld. Enter your answers In dollars, not In mililons. For exomple, $5.5 millon should be entered es 5,500,000.)
View transaction list
Journal entry worksheet
Record the repayment of the note at maturity for Precision Castparts.
Not EnterdetR betar ret
Date
General Journal
Debit
Credit
September 30, 2022
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