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Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.5
million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7%
promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity.
Each firm has a December 31 year-end.
Problem 8-2A Part 3
3. Prepare the journal entries on September 30, 2022, to record payment of the notes payable at maturity. (Do not round
intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account
field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)
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Journal entry worksheet
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Record the receipt of cash at maturity for Midwest Bank.
Note: Enter debits before credits.
Date General Journal Debit Credit
September 30, 2022
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