Entries for Notes Payable

A business issued a $45-$day, $10\%$ note for $$205,000$ 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.

Round your final answers to the nearest dollar. If an amount box does not require an entry, leave it blank.

a$.$

Accounts Payable

$205,000$

Notes Payable

$205,000$

b$.$

Notes Payable

$205,000$

Interest Expense

$2,562\mathrm{.}50$

Cash

$2,075,623$