Problem 9-6

How do I account for discounted note payable (L.O. 6)

Premium Office Equipment, Inc., discounted its own $30,000, noninterest-bearing, 180-day note on November 16, 2018, at Niagara County Bank at a discount rate of 9%.

How do I prepare dated journal entries for:

a.The original discounting on November 16

b.The adjustment required at the end of the company's calendar-year accounting period

c.Payment at maturity