Here, we are going to prepare the entry for the issuance and repayment of maturity of the note.
Given information
issuance of $13 million of commercial paper.
Maturity on note on December 31.
9% interest rate.
Date Account titles and explanation Debit Credit
1-Apr Cash $13,000,000
Note payable - Commercial paper $13,000,000
(To record the issuance of note)
Date Account titles and explanation Debit Credit
Dec 31 Note payable - Commercial paper $13,000,000
Interest Expenses $877,500
($13,000,000*9%*9/12)
Cash $13,877,500
(To record the repayment of maturity)
See similar solution here
brainly.com/question/14097946
