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Fisher Company borrowed $700,000 by issuing a 90-day note to Trusted Funding Company. Trusted Funding Company discounts the note at 8%. (Assume a 360-day year
Fisher Company borrowed $700,000 by issuing a 90-day note to Trusted Funding Company. Trusted Funding Company discounts the note at 8%. (Assume a 360-day year is used for interest computations.)
Show all calculations to get credit. Complete the journal entry form below.
| (a) | Journalize Fishers entries for: |
| (1) The issuance of the note. | |
| (2) The payment of the note at maturity. | |
| (b) | Journalize Trusteds entries for: |
| (1) The discounting of the note. | |
| (2) The receipt of the payment of the note at maturity. |
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