Copperfield and Company issued a 90-day, 6.00% note for $190,000 to a creditor on account. The previous
Question:
Copperfield and Company issued a 90-day, 6.00% note for $190,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity.
PAGE 25
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 | Jul. 10 | Accounts Payable |
| 190,000.00 |
|
| ↓ |
|
2 |
| Notes Payable |
|
| 190,000.00 |
| ↑ |
|
3 | Notes Payable |
| 201,400.00 |
|
| ↓ |
| |
4 |
| Accounts Payable |
|
| 190,000.00 |
| ↑ |
|
5 |
| Interest Expense |
|
| 11,400.00 |
|
| ↑ |
You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct.
Journalize the payment of the note at maturity as it should have been journalized. Don’t forget to include the date. Assume a 360-day year.
Question not attempted.
PAGE 25
JOURNAL
ACCOUNTING EQUATION
Score: 0/37
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
|
|
|
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
|
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng