1. A business issued a 45-day, 4% note for $240,000 to a creditor on account.Journalize the entries...
Question:
1. A business issued a 45-day, 4% note for $240,000 to a creditor on account.Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.
2. Entries for Discounted Note Payable
A business issued a 30-day note for $57,000 to a creditor on account. The note was discounted at 9%. Assume a 360-day year.
a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place.
a. | |||
b. Journalize the entry to record the payment of the note at maturity.
b. | |||
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren