Question
A business issued a 120-day, 6% note for $235,000 to a creditor on account. a. Journalize the entry to record the issuance of the note
A business issued a 120-day, 6% note for $235,000 to a creditor on account.
a. Journalize the entry to record the issuance of the note on January 1. Refer to the Chart of Accounts for exact wording of account titles. Round amounts to the nearest whole dollar.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
1 | ||||||||
2 |
b. Journalize the entry to record the payment of the note at maturity, including interest on May 1. Assume a 360-day year and round amounts to the nearest whole dollar. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 2
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
1 | ||||||||
2 | ||||||||
3 |
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Introduction to Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
6th edition
78136601, 978-0078136603
