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Grayson Flowers Borrowed $400,000 from the Bank on a Six-Month,7

Question 173

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Grayson Flowers borrowed $400,000 from the bank on a six-month,7% interest-bearing note on October 1,Year 1.The company's year end is December 31st.The note and all related interest was repaid to the bank on April 1,Year 2.
A) Prepare the company's entry for this note on October 1, Year 1.
B) Record the adjusting entry for this note on December 31, Year 1.
C) Indicate how the note and the accrued interest would be reported on the balance sheet on December 31, Year 1.
Prepare the entry to record the repayment of the note on April 1, Year 2.

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