Entries for Notes Payable A business issued a 120-day, 5% note for $60,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. a. Accounts Payable Notes Payable b. Notes Payable Interest Expense Cash Feedback Check My Work Why is the company issuing the note? What type of note is being issued (interest-bearing or discounted)? How much will the company owe on the maturity date? On the maturity date, the debtor must repay the face amount of the note, plus interest. Interest is computed by multiplying the face amount with the interest rate and the time period. Previous Next