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Entries for Discounted Note Payable A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%. Assume
Entries for Discounted Note Payable
A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%. Assume a 360-day year.
a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. | Accounts Payable _________ _________ | ||
Interest Expense _______ _________ | |||
Notes Payable _______ _________ |
b. Journalize the entry to record the payment of the note at maturity.
b. | Notes Payable ______ | ||
Cash _______ |
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