Question: Chapter 10 Practice Problems Discounted Notes: Interest is paid up front 1) Prepare the journal entry for the issuance of the note payable. 2)

Chapter 10 Practice Problems Discounted Notes: Interest is paid up front 1) Prepare the journal entry for the issuance of the note payable. 2) Calculate the maturity date. 3) Calculate the maturity value. 4) Prepare the journal entry for payment of the note at the maturity date. Problem #3 [Discounted Note Interest is paid up front] Sept 2, purchased equipment by issuing a $300,000, 60-day note to XYZ Company, which discounted the note at the rate of 6%. DATE ACCOUNTS DR CR DATE ACCOUNTS DR CR

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