Problem 8-2A (Algo) Record notes payable and notes receivable (LO8-2)Precision Cestparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash onOctober 1, 2024, to provide working capital for anticipated expension. Precision signs a one-year, 9% promissory note to Midwest Bankunder 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 receivablefor 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) thenotes receivable for Midwest Bank.Complete this question by entering your answers in the tabs below.Required 2 Required 3Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable forl Entry RequirIMidwest Bank, (1 no entry is required for a transaction/event, select "No Journal 500 ed" in the first account field. Enter youanswers in dollars, not in millions.$5.5 million should be entered as 5r example,View transaction listRequired 1Journal entry worksheetRecord the issuance of the note by Precision Castparts.Note: Enter debits before credits.DateOctober 01, 2024Record entryGeneral JournalClear entryJournal entry worksheet< 1Record the acceptance of the note by Midwest Bank.Note: Enter debits before credits.DateOctober 01, 2024Journal entry worksheetNote: Enter debits before credits.DateDecember 312024Record entryRecord the adjusting entry for interest for Midwest Bank.< 1General JournalClear entryDateSeptember 30, 2025General JournalClear entryJournal entry worksheetNote: Enter debits before credits.Record entryCreditCreditView general JournalRequired 3 >DebitCreditRequired 3 >Journal entry worksheetView general journalRecord the adjusting entry for interest for Precision Castparts.Note: Enter debits before credits.<DateDecember 31,2024Record entryJournal entry worksheetNote: Enter debits before credits.General JournalDateSeptember 30, 2025Clear entryRecord entry< Required 1Record the repayment of the note and payment of interest at maturity forPrecision Castparts.General JournalClear entryDebit< Required 2CreditView general JournalRequired 3 >DebitCredit>View general JournalRequired 3 >>

The process of a business or governmental body obtaining money from investors by issuing a…

roblem 8-2A (Algo) Record notes payable and notes receivable (LO8-2) ecision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on ctober 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank der a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. quired: Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable Midwest Bank. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the tes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) View transaction list Journal entry worksheet 2 Record the issuance of the note by Precision Castparts. Journal entry worksheet < 1 2 Record the acceptance of the note by Note: Enter debits before credits Date October 01, 2024 Record entry Journal entry worksheet 1 2 Gener Clear Record the adjusting entry for interest for Mid

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q