Question
A business issued a 120-day, 5% note for $90,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note
A business issued a 120-day, 5% note for $90,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year.
For a compound transaction, if an amount box does not require an entry, leave it blank.
a. | Accounts PayableCashInterest ExpenseNotes PayableNotes ReceivableAccounts Payable | Accounts Payable | |
Accounts PayableCashInterest ExpenseNotes PayableNotes ReceivableNotes Payable | Notes Payable | ||
b. | Accounts PayableCashInterest RevenueNotes PayableNotes ReceivableNotes Payable | Notes Payable | Notes Payable |
Accounts PayableCashInterest ExpenseInterest RevenueNotes ReceivableInterest Expense | Interest Expense | Interest Expense | |
Accounts PayableCashInterest ExpenseNotes PayableNotes ReceivableCash | Cash | Cash |
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