Answer:
Aug 1
Dr Cash 20,300,000
Cr Notes payable 20,300,000
Dec 31
Dr Interest expense 510,000
Cr Interest payable 510,000
Jan 31
Dr Notes payable 20,400,000
Dr Interest expense 102,000
Dr Interest payable 522,500
Cr Cash 21,024,500
Explanation:
Trico Technologies Journal entries
Aug 1
Dr Cash 20,300,000
Cr Notes payable 20,300,000
Dec 31
Dr Interest expense 510,000
Cr Interest payable 510,000
(20,400,000*5/12*6%)
Jan 31
Dr Notes payable 20,400,000
Dr Interest expense 102,000
($20,400,000×1/12*6%)
Dr Interest payable 522,500
(20,400,000*5/12*6%)
Cr Cash 21,024,500
