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On June 1, Huntley Company Borrows $50,000 from the Bank

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Essay

On June 1, Huntley Company borrows $50,000 from the bank by signing a 60-day, 6%, interest-bearing note.
Instructions
Prepare the necessary entries below associated with the note payable on the books of Huntley Company.
(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 the monthly financial statements. Assume no other interest accrual entries have been made.
(c) Prepare the entry to record payment of the note at maturity.


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