Recording Transactions and adjustments

Indicate the accounts to be debited and credited when recording the following transactions and adjustments by writing the identifying letters in the answer column. There may be more than one letter for a debit or credit. The first answer is given as an example.

Debit Credit

A H 0. Gave an interest bearing note to a creditor on account.

___ ___ 1. Received an interest bearing note from a charge customer

___ ___ 2. Received payment from the maker of the note in transaction 1

___ ___ 3. Borrowed from a bank, giving a 45 day , 9 percent note (received full face value.)

___ ___ 4. Paid note issued in transaction 3.

___ ___ 5. Borrowed money from a bank; gave bank a 60 day non-interest bearing note

(That will mature before the end of the fiscal period) at a discount rate of 8%.

___ ___ 6. Paid bank the amount due in transaction 5.

___ ___ 7. Discounted at the bank an interest bearing note received from a charge customer;

The proceeds are less than the principle.

___ ___ 8. Recorded adjusting entry for accrued interest on an interest bearing note payable.

___ ___ 9. Recorded adjusting entry for accrued interest on an interest bearing note receivable.

A - Accounts Payable

B- Accounts Receivable

C- Cash

D- Interest Expense

E