North Face is one of the world's most popular outdoor apparel companies. Assume
that North Face borrows $3.4 million from U.S. Bank and signs a note promising to pay
back the $3.4 million in nine months, at which time North Face also will pay any
accrued interest. The interest rate on the note is 6 percent.
Required:
1. Prepare the journal entry North Face will record when it signs the note and receives
the cash.
2. Prepare the journal entry that North Face will record when it pays off the note and
any accrued interest after nine months.
(For all requirements, if no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Enter your answers in whole dollars
not in millions (i.e., 1,000,000 not 1.0).)