ENTRIES FOR, AND FINANCIAL STATEMENT PRESENTATION OF A NOTE Griddley Company borrowed $80,000 from the East Salvador Bank on February 1, 2008, on a three-year, 7.2 percent note. Interest is paid annually on January 31.
Required:
1. Record the borrowing transaction in Griddley's journal.
2. Prepare the adjustments made at December 31, 2008 and 2009.
3. Prepare the necessary journal entry to recognize 2009 interest to date and the first interest payment on January 31, 2009.
4. Indicate how the note and associated interest would be presented in Griddley's December 31, 2008, balance sheet.
5. Prepare the necessary journal entry to record the repayment of the note and the last year's interest on January 31, 2011.