Problem
On August 31, 2022, Mackel Inc. accepted a 6 month note from Tamer Limited in the amount of $10,000. The note bears 7% annual interest and replaced the accounts receivable that Mackel has recorded for Tamer. Tamer will pay the face value of the note plus interest on the due date.
Task
A. Prepare the journal entry to record the acceptance of the note.
B. Record any interest owing to Mackel at their year-end, December 31.
C. Prepare the journal entry to record payment of the note on the due date.