Entries for notes payable

Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account.

Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank.

a.If the note is issued with a 45-day term, journalize the entries to record:

1. the issuance of the note.
2. the payment of the note at maturity.

b.If the note is issued with a 90-day term, journalize the entries to record:

1. the issuance of the note.
2. the payment of the note at maturity.