2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to Chicago National Bank. The market rate on the note is 5%. 11 gnitoqo lsionsni a. Prepare the journal entries at the following dates: May 1: December 31: At maturity: Account DR CR Lamo ако 15vor1 mos b. What amount(s) would be reported in the current liabilities section of the balance sheet at December 31 for this note?
2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to Chicago National Bank. The market rate on the note is 5%. 11 gnitoqo lsionsni a. Prepare the journal entries at the following dates: May 1: December 31: At maturity: Account DR CR Lamo ако 15vor1 mos b. What amount(s) would be reported in the current liabilities section of the balance sheet at December 31 for this note?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to
Chicago National Bank. The market rate on the note is 5%.
11 gnitoqs lsionsni
a. Prepare the journal entries at the following dates:
May 1:
December 31:
At maturity:
Account
m59
DR
CR
ВИО
5vor1
moo
b. What amount(s) would be reported in the current liabilities section of the balance sheet
at December 31 for this note?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97acff04-b4cf-43b4-bf87-7723b5f0950f%2F9f0e83e8-b4a2-4759-8171-9751b38a93f7%2Foigym4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. On May 1, Edwards signs a $125,000 non-interest-bearing note payable due in one year to
Chicago National Bank. The market rate on the note is 5%.
11 gnitoqs lsionsni
a. Prepare the journal entries at the following dates:
May 1:
December 31:
At maturity:
Account
m59
DR
CR
ВИО
5vor1
moo
b. What amount(s) would be reported in the current liabilities section of the balance sheet
at December 31 for this note?
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