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Nolton Company for bearing note

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On April 1, Nolton Company borrows $80,000 from West Bank by signing a 6-month, 6% interest bearing note.

Instructions
Prepare the necessary entries below associated with the note payable on the books of Nolton Company.
(a) Prepare the necessary entry on April 1 when the note was issued.
(b) Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made.

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This solution is comprised of a detailed explanation to prepare the necessary entry on April 1 when the note was issued.

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On April 1, Nolton Company borrows $80,000 from West Bank by signing a 6-month, 6% interest bearing note.

Instructions
Prepare the necessary entries below associated with the note payable on the books ...

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