Answer:
Record the necessary entries in the Journal Entry Worksheet below for FirstBanc Corp.
August 01, 2021:
Cash- 20.800.000
Notes Payable- 20.800.000
December 31, 2021:
Interest Expense- 520.000
Interest Payable- 520.000
January 31, 2022:
Notes Payable- 20.800.000
Interest Payable- 520.000
Interest Expense- 104.000
Cash- 21.424.000
Explanation:
August 01, 2021:
Cash- 20.800.000
Notes Payable- 20.800.000
December 31, 2021:
Interest Expense- 520.000
Interest Payable- 520.000
January 31, 2022:
Notes Payable- 20.800.000
Interest Payable- 520.000
Interest Expense- 104.000
Cash- 21.424.000