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Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes Midwest Bank. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list No 1 2 Date October 01, 2024 October 01, 2024 View journal entry worksheet Cash Notes Payable Notes Receivable Cash General Journal Debit 40,200,000 40,200,000 Credit 40,200,000 40,200,000 ********

Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes Midwest Bank. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list No 1 2 Date October 01, 2024 October 01, 2024 View journal entry worksheet Cash Notes Payable Notes Receivable Cash General Journal Debit 40,200,000 40,200,000 Credit 40,200,000 40,200,000 ********

FINANCIAL ACCOUNTING
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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Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one- year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes i Midwest Bank. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list No 1 2 Date October 01, 2024 Required 3 October 01, 2024 View journal entry worksheet Cash Notes Payable Notes Receivable Cash General Journal Required 1 Required 2 Debit 40,200,000 40,200,000 > Credit 40,200,000 40,200,000 Ⓒ
Transcribed Image Text:Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one- year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes i Midwest Bank. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list No 1 2 Date October 01, 2024 Required 3 October 01, 2024 View journal entry worksheet Cash Notes Payable Notes Receivable Cash General Journal Required 1 Required 2 Debit 40,200,000 40,200,000 > Credit 40,200,000 40,200,000 Ⓒ
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