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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.
