Notes Payable

A business issued a $180-$day, $8\%$ note for $$31,000$ to a creditor on account. Illustrate the effects on the accounts and financial statements of recording $($a$)$ the issuance of the note and $($b$)$ the payment of the note at maturity, including interest.

If no account or activity is affected, select $"$No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

a$.$ Illustrate the effects on the accounts and financial statements of recording the issuance of the note.

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

$=$

$+$

$+$

fill in the blank $5$

fill in the blank $6$

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fill in the blank $8$

Statement of Cash Flows Income Statement

fill in the blank $10$

fill in the blank $12$

b$.$ Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a $360-$day year. If required, round interest expense to the nearest whole number.

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

$=$

$+$

fill in the blank $16$

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fill in the blank $18$

Statement of Cash Flows Income Statement

fill in the blank $20$

fill in the blank $22$