Sharp Company Borrowed $500,000 on a 6% One-Year, Interest-Bearing Note

Sharp Company borrowed $500,000 on a 6% one-year, interest-bearing note dated November 1, 2014 with interest payable at maturity. The annual accounting period ends on December 31. Assume that adjusting entries are only made at December 31, the company's fiscal year-end.
Required:
Prepare journal entries for each of the following dates:
A. November 1, 2014.
B. December 31, 2014.
C. October 31, 2015.

Correct Answer:

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