On November 1, 2018, Aviation Training Corp. borrows $46,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation’s year-end is December 31.Required: Record the necessary entries in the Journal Entry. i. Record the issuance of note. ii. Record the adjustment for interest. iii. Record the repayment of the note at maturity.

Answer and Explanation:

The journal entries are shown below:

1.  Cash $46,000

              To Note payable $46,000

(Being the issuance of the note is recorded)

2.  Interest expense ($46,000 × 6% × 2 months ÷ 12 months) $460

            To interest payable $460

(Being the interest expense is recorded)

3. Note payable $46,000

   Interest payable $460

   Interest expense ($46,000 × 6% × 1 months ÷ 12 months ) $230

              To cash $46,690

(Being the repayment of the note is recorded)

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.