Question: Smith issues a note payable for $3.300 on March 1, 2020. The cash received from the note was used to purchase equipment. The note carries
Smith issues a note payable for $3.300 on March 1, 2020. The cash received from the note was used to purchase equipment. The note carries and interest rate of 8.0%, and is due in three months. What is the proper journal to record the issuance of the note? Date 1. Mar Account Cash Note Payable Debit Credit $3,300 $3.300 Date 1. Mar Debit Credit $3,300 Account Note Payable Interest Expense Cash $3,366 Date 1-Mar Account Cash Interest Expense Note Payable Debit Credit $3.234 566 $3.300 Date 1-Mar Account Cash Note Payable Debit Credit $3,366 53.366
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
