Accounting for notes payable (Learning Objective 2) 5–10 min.

On April 30, 2014, Dawson, Co., borrowed $6,000 on a one-year, 9% note payable.

What amounts would Dawson, Co., report for the note payable and the related interest payable on its balance sheet at July 31, 2014, and on its income statement for the year ended July 31, 2014?

AppendixLO1