A business issued a 120-day, 6% note for $10,000 to a creditor to replace and existing accounts payable. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. In your journal entries, clearly identify which accounts and amounts are to be debited and which are to be credited.

Description Debit Credit

a.

b.