On December 1, Gates Company borrowed $45,000 cash from FirstBank by signing a 90-day, 9% note payable.
a. Prepare Gate's journal entry to record the issuance of the note payable.
b. Prepare Gate's journal entry to record the accrued interest due at December 31.
c. Prepare Gate's journal entry to record the payment of the note on March 1 of the next year.

Question

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The Answer of On December 1, Gates Company borrowed $45,000 cash from FirstBank by signing a 90-day, 9% note payable.
a. Prepare Gate's journal entry to record the issuance of the note payable.
b. Prepare Gate's journal entry to record the accrued interest due at December 31.
c. Prepare Gate's journal entry to record the payment of the note on March 1 of the next year.

On December 1, Gates Company Borrowed $45,000 Cash from FirstBank