Entries for Discounted Note Payable

A business issued a 90-day note for $51,000 to a bank. The note was discounted at 8%. Assume a 360-day year.

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a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round to nearest whole dollar.

	Accounts PayableCashInterest PayableNotes PayableNotes Receivable	- Select -	- Select -
	CashInterest ExpenseInterest ReceivableNotes PayableNotes Receivable	- Select -	- Select -
	Accounts PayableCashInterest ExpenseNotes PayableNotes Receivable	- Select -	- Select -

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b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

	Accounts PayableCashInterest RevenueNotes PayableNotes Receivable	- Select -	- Select -
	Accounts PayableCashInterest ExpenseInterest RevenueNotes Receivable	- Select -	- Select -