Question

Required information 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 2

2. Record the adjustments on December 31, 2021, for (a) Eskimo Joe's and (b) Stillwater National Bank. (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.)

No	Date	General Journal	Debit	Credit
2	December 31, 2021	No Transaction Recorded

3. Prepare the journal entry on April 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.)
  

ournal entry worksheet

• Record the repayment of the note at maturity for Eskimo Joe's.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
April 30, 2022

Journal entry worksheet

• Record the receipt of cash at maturity for Stillwater National Bank.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
April 30, 2022

Answer 1