Wellington Company had the following transactions involving notes payable.
Nov. 1, 2010 Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.
Dec. 31, 2010 Prepares the adjusting entry.
Feb. 1, 2011 Pays principal and interest to Olathe State Bank.
Instructions
Prepare journal entries for each of the transactions.

Question

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The Answer of Wellington Company had the following transactions involving notes payable.
Nov. 1, 2010 Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.
Dec. 31, 2010 Prepares the adjusting entry.
Feb. 1, 2011 Pays principal and interest to Olathe State Bank.
Instructions
Prepare journal entries for each of the transactions.

Wellington Company Had the Following Transactions Involving Notes Payable