On March 1, LGE asks to extend its past-due $6,800 account payable to Tyson. Tyson agrees to accept $1,600 cash and a 180-day, 8%,$5,200 note payable to replace the account payable. (Use 360 days a year.)(1) Prepare the March 1 entry for LGE.(2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson.View transaction listJournal entry worksheet12Record LGE's entry to extend its past-due $6,800 account payable by payingcash of $1,600 and issuing a 180-day, 8%, $5,200 note payable.Note: Enter debits before credits.>

A journal entry is a record of a business transaction in a company's accounting system. It includes…

Answered: 1) Prepare the March 1 entry for LGE.…

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1) Prepare the March 1 entry for LGE. 2) Prepare the August 28 entry for LG

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On March 1, LGE asks to extend its past-due $6,800 account payable to Tyson. Tyson agrees to accept $1,600 cash and a 180-day, 8%,
$5,200 note payable to replace the account payable. (Use 360 days a year.)
(1) Prepare the March 1 entry for LGE.
(2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson.
View transaction list
Journal entry worksheet
1
2
Record LGE's entry to extend its past-due $6,800 account payable by paying
cash of $1,600 and issuing a 180-day, 8%, $5,200 note payable.
Note: Enter debits before credits.
>

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