E11: Chapter 11 Current Liabilities & Payroll Accounting (10 Points)

On November 1, 2015, Madonna Co. borrowed $6,000 from the bank on a 100 day, 9% Note. (Assume a 360 day year). The entries to record the note as well as to accrue interest on Dec. 31 have been entered in the general journal below and posted to the appropriate general ledger accounts. Closing entries for 2016 have also been made (though not shown in the journal) and posted to the appropriate ledger accounts. The Cash general ledger account has been omitted for simplicity.

Journalize and post the entry needed to record the payment of the note at maturity. Use the exact maturity date of the note in the Date columns. Remember to use the PR columns in both the General Journal and the General Ledger. The General Ledger can be found on page 2 of the assignment.

General Journal

2015				Page 8
Date	Account Titles and Explanation	PR	Debit	Credit
11/01	Cash	100	6,000
	Notes Payable	340		6,000
12/31	Interest Expense	580	90
	Interest Payable	330		90
2016				Page 12
Date	Account Titles and Explanation	PR	Debit	Credit

Partial General Ledger

			Interest Payable	ACCT	330
Date					Credit
2015	Explanation	PR	Debit	Credit	Balance
12/31		G8		90	90
2016

			Notes Payable	ACCT	340
Date					Credit
2015	Explanation	PR	Debit	Credit	Balance
11/01		G8		6,000	6,000
2016

			Interest Expense	ACCT	580
Date					Debit
2015	Explanation	PR	Debit	Credit	Balance
12/31		G8	90		90
12/31	Closing	G10		90	-0-
2016