Question
A company issued a 30-day 7% note for $50,400 to a creditor on account. The company uses a 360-day year to calculate interest. Post entries
A company issued a 30-day 7% note for $50,400 to a creditor on account. The company uses a 360-day year to calculate interest.
Post entries to record
(a) the issuance of the note on April 30 and
(b) the payment of the note at maturity, including interest.
Step by Step Solution
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a On April 30 the company would record the issuance of the note as follows Date Particulars Debit Am...
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
