Question

Problem 8-2B Record notes payable and notes receivable (LO8-2) Skip to question [The following information applies to the questions displayed below.] Eskimo Joe’s, designer of the world’s second best-selling T-shirt (just behind Hard Rock Cafe), borrows $21 million cash on November 1, 2021. Eskimo Joe’s signs a six-month, 7% promissory note to Stillwater National 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 8-2B Part 1

Required:

1. Prepare the journal entries on November 1, 2021, to record the issuance of the note. (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.)

Journal entry worksheet

• Record the issuance of the note to Eskimo Joe's.

Note: Enter debits before credits.

Date

General Journal

Debit

Credit

November 01, 2021

Journal entry worksheet

• Record the acceptance of the note by Stillwater National Bank.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
November 01, 2021

Answer 1

1)
Date	Account Titles and explanation	Debit	Credit
November 1, 2021	Cash	$ 21,000,000
	Notes Payable		$ 21,000,000
	(To record the issuance of the note to Eskimo Joe's )
November 1, 2021	Notes Receivable	$ 21,000,000
	Cash		$ 21,000,000
	(To record the acceptance of the note by Stillwater )