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Question - On July 1, 2021, Hanutes Inc. borrowed $90,000 from Scuzz Bank on a 10 month, 6% note payable. Interest is payable on April 30, 2022, the due date of the note. Their accounting year ends January 31, 2022.
Required -
1. Prepare the journal entry on the company's books to record the note payable on July 1, 2021.
2. Prepare any year end adjusting entries required on January 31, 2022.
3. Show how this information will be presented on the company's 2022 year-end Statement of Financial Position (ignore cash).
4. Prepare the entry to record the payment on April 30, 2022.
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