On november 1, 2021, aviation training corp. borrows $51,000 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: 1.-3. record the necessary entries in the journal entry worksheet below. record the issuance of note. record the adjustment for interest. record the repayment of the note at maturity.

The Journal entries are as follows:

1. Issuance of note :

Cash A/c     Dr. $51,000

To Note payable            $51,000

(To issuance of note)

2. Adjustment for interest :

Interest expense ($51,000 × 6% × 2/12) A/c   Dr. $510

To Interest payable A/c                                                  $510

(To record the adjustment for interest)

3. Repayment of note :

Note payable A/c                                            Dr. $51,000

Interest payable A/c                                        Dr. $510

Interest expense ($51,000 × 6% × 1/12) A/c  Dr. $255

To cash A/c                                                                      $51,765

(To record the repayment of the note at maturity)