Upland company borrowed $40,000 on november 1, 2017, by signing a $40,000, 9%, 3-month note. prepare upland’s november 1, 2017, entry; the december 31, 2017, annual adjusting entry; and the february 1, 2018, entry. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when amount is entered. do not indent manually.)

cash 40,000 debit

  note payable 40,000 credit

--to record signing of note

interest expense 300 debit

     interest payable    300 credit

--to record accrued interest

note payable  40,000 debit

interest payable   300 debit

interest expense  600 debit

   cash                            40,900 credit

--to record honor of the note---

Explanation:

when signing the note we receive the cash and delcare the liability

at December 31th

we recognzie the accrued interest: for the month

we need to convert the annual rate to monthly: 0.09/12 = 0.0075

40,000 x 0.0075 = 300

at payment of the note, we write-off the note

we pay the full interest:

300 per month x 3 month = 900

we already accrued one so the expense will be for 600

idk the answer so dont listen to me but 23