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On June 1,the Muntley Company borrows $40,000 from the bank by signing a180-day, 6%, interest-bearing note.
Prepare the necessary entries below associated with the note payable on thebooks of both Muntley Company and the bank.
(a) Prepare the entry on June 1 when the note was issued.(b) Prepare any adjusting entries necessary on June 30 in order to prepare themonthly financial statements. Assume no other interest accrualentries have been made.
(c) Prepare the entry to record payment of the note at maturity December 31).
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