July $15$ Borrowed $$1,000$ cash from the bank, giving a $60-$day non$-$interest$-$bearing note. The note is discounted $6\%$ by the bank.

Sept: $13$ Paid the $$1,000$ note, recognizing the discount as interest expense.

Prepare general journal entries for the transactions. Assume $360$ days in a year:

$\backslash$table$[[,$DATE,ACCOUNT TITLE,$\backslash$table$[[$DOC$.$ POST,$],[$NO$.$ REF.$]],$DEBIT,CREDIT$],[1,\backslash$table$[[20-.],[$Jul$.15]],,,,],[2,,,,,],[3,,,,,],[4,,,,,],[5,$Sept. $13,p,,,],[6,,,,,],[7,,,,,],[8,,$longrightarrow,,,$],[9,,,,,]]$

Transcribed Image Text:

Issued for Bank Loan) July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by the bank. Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 N M T 567 3 4 8 00 0 5 Sept. 13 DATE 9 20- Jul. 15 ACCOUNT TITLE DOC. POST, NO. REF. DEBIT CREDIT 1 2 m yn 10 5 6 10 00 8 Issued for Bank Loan) July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by the bank. Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 N M T 567 3 4 8 00 0 5 Sept. 13 DATE 9 20- Jul. 15 ACCOUNT TITLE DOC. POST, NO. REF. DEBIT CREDIT 1 2 m yn 10 5 6 10 00 8

Answer rating: 100% (QA)

The scenario presents a case where a company borrows 1000 from a bank on a 60day noninterestbearing ... View the full answer