On august 1, 2021, trico technologies, an aeronautic electronics company, borrows $20.1 million cash to expand operations. the loan is made by firstbanc corp. under a short-term line of credit arrangement. trico signs a six-month, 9% promissory note. interest is payable at maturity. trico’s year-end is december 31.
required:
1. record the issuance of note.
2. record the adjustment for interest.
3. record the repayment of the note at maturity.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.