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

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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 on
October 1, 2024, to provide working capital for anticipated expension. 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 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 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
l Entry Requir
I
Midwest Bank, (1 no entry is required for a transaction/event, select "No Journal 500 ed" in the first account field. Enter you
answers in dollars, not in millions.
$5.5 million should be entered as 5
r example,
View transaction list
Required 1
Journal entry worksheet
Record the issuance of the note by Precision Castparts.
Note: Enter debits before credits.
Date
October 01, 2024
Record entry
General Journal
Clear entry
<Required 1
Debit
Credit
View general journal
Required 2 >
Journal entry worksheet
< 1
Record the acceptance of the note by Midwest Bank.
Note: Enter debits before credits.
Date
October 01, 2024
Journal entry worksheet
Note: Enter debits before credits.
Date
December 31
2024
Record entry
Record the adjusting entry for interest for Midwest Bank.
< 1
General Journal
Clear entry
Date
September 30, 2025
General Journal
Clear entry
Journal entry worksheet
Note: Enter debits before credits.
Record entry
<Required 1
< Required 1
Record the receipt of cash at maturity for Midwest Bank.
General Journal
Debit
Clear entry
< Required 2
Debit
View general journal
Required 2 >
Credit
Credit
View general Journal
Required 3 >
Debit
Credit
Required 3 >
Journal entry worksheet
View general journal
Record the adjusting entry for interest for Precision Castparts.
Note: Enter debits before credits.
<
Date
December 31,
2024
Record entry
Journal entry worksheet
Note: Enter debits before credits.
General Journal
Date
September 30, 2025
Clear entry
Record entry
< Required 1
Record the repayment of the note and payment of interest at maturity for
Precision Castparts.
General Journal
Clear entry
Debit
< Required 2
Credit
View general Journal
Required 3 >
Debit
Credit
>
View general Journal
Required 3 >
>
Transcribed Image Text: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 on October 1, 2024, to provide working capital for anticipated expension. 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 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 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 l Entry Requir I Midwest Bank, (1 no entry is required for a transaction/event, select "No Journal 500 ed" in the first account field. Enter you answers in dollars, not in millions. $5.5 million should be entered as 5 r example, View transaction list Required 1 Journal entry worksheet Record the issuance of the note by Precision Castparts. Note: Enter debits before credits. Date October 01, 2024 Record entry General Journal Clear entry <Required 1 Debit Credit View general journal Required 2 > Journal entry worksheet < 1 Record the acceptance of the note by Midwest Bank. Note: Enter debits before credits. Date October 01, 2024 Journal entry worksheet Note: Enter debits before credits. Date December 31 2024 Record entry Record the adjusting entry for interest for Midwest Bank. < 1 General Journal Clear entry Date September 30, 2025 General Journal Clear entry Journal entry worksheet Note: Enter debits before credits. Record entry <Required 1 < Required 1 Record the receipt of cash at maturity for Midwest Bank. General Journal Debit Clear entry < Required 2 Debit View general journal Required 2 > Credit Credit View general Journal Required 3 > Debit Credit Required 3 > Journal entry worksheet View general journal Record the adjusting entry for interest for Precision Castparts. Note: Enter debits before credits. < Date December 31, 2024 Record entry Journal entry worksheet Note: Enter debits before credits. General Journal Date September 30, 2025 Clear entry Record entry < Required 1 Record the repayment of the note and payment of interest at maturity for Precision Castparts. General Journal Clear entry Debit < Required 2 Credit View general Journal Required 3 > Debit Credit > View general Journal Required 3 > >
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