Notes Payable A business issued a 180 day, 7 note for $70,000 to a creditor on account Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest If no account or activity is affected, select No effect from the dropdown list and leave the corresponding number entry box blank Enter account decreases and cash outflows as negative amounts a Illustrate the effects on the accounts and financial statements of recording the issuance of the note Statement of Cash Flows Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Statement of Cash Flows Income Statement b Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest Assume a 360 day year If required, round interest expense to the nearest whole number Statement of Cash Flows Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Statement of Cash Flows Income Statement

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Posted on Sep 30, 2024

Notes Payable A business issued a 180-day, 7% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial statements

Notes Payable

A business issued a 180-day, 7% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest.

If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note.

Statement of Cash Flows	Balance Sheet							Income Statement
	Assets	=	Liabilities		+	Stockholders' Equity
		=		+	+

Statement of Cash Flows							*Income Statement*

b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number.