1.On October 1, 2018, SoCom Company borrowed $5 million from its bank under a 9-month note payable which required interest at 4%. Prepare the Journal Entries required on October 1 for the borrowing; on December 31 to accrue interest; and on June 30, 2019 to pay off the note.
2.PopFab Corporation provides two-weeks of vacations to its employees, which can be carried over for 1-year if not taken in the year that they were earned. PopFam employees earn an average of $1,200 per week, and at the end of 2018 employees had earned 300 weeks of vacation that were vested but had not been taken. Assume that wage rates for employees had risen by 2% by the time this vacation was taken in 2019 and that total wages earned in 2019 (including vacation pay) were $24.5 million. Prepare a journal entry that summarizes 2019 wages and the payment for 2018 vacations taken in 2019.
Here are two example questions that are on the test. I need it back in 3 hours so time is not negotiable.