Notes Payable

A business issued a 90-day, 7% note for $30,000 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
	No effect	=	Accounts payable	+	Notes payable	+		No effect
Statement of Cash Flows								Income Statement
No effect								No effect