Occasionally, on the maturity date, a note may be renewed instead of being paid. When this occurs, (1) the interest on the first note is paid, (2) the first note is canceled, and (3) a new note for the same principal amount is issued, usually at a higher interest rate. Buzz Newsstand had the following transactions. 

Instructions

In your working papers, record the following transactions on general journal page 24. 

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Date Transactions Mar. 14 Sold merchandise on account to Saba Nadal for $1,800, plus sales tax of $108.00, terms 30 days, Sales Slip 388. Apr. 13 Accepted a 60-day, 9% note for $1,908.00 from Saba Nadal in place of the account receivable, Note 416. June 12 Received the interest due from Saba Nadal for the note dated April 13 and agreed to renew the note at 10% for 90 days, Receipt 1387 and Note 417. Sept. 10 Received a check from Saba Nadal for the maturity value of the note issued June 12, Receipt 1555.