Prepare the required journal entries to record the note

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During a recession many businesses borrow money to help increase business activity by financing inventory and accounts receivable. For example, Sony builds up its inventory to meet the needs of retailers selling the Playstation 5. A large portion of Sony's sales are on credit. As a result, Sony often collects cash from its sales several months after the transaction date. Assume on November 1, 2018, Sony borrowed $6 million cash from Chase Bank and signed a promissory note that matures in six months. The interest rate was 8.0 percent payable at maturity. The accounting period ends December 31.

Problem 1: Prepare the required journal entries to record the note on November 1, 2018, interest on the maturity date, April 30, 2019, assuming that interest has not been recorded since December 31, 2018.

Reference no: EM132830800

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