6. A company issue a note to a bank to borrow money. They borrowed $10,000 for 4 months (120 days) at 12%. a. Prepare the journal entries for the issue of the note and the subsequent payment. Using the same information, prepare the same journal entries assuming the note was b. discounted.
6. A company issue a note to a bank to borrow money. They borrowed $10,000 for 4 months (120 days) at 12%. a. Prepare the journal entries for the issue of the note and the subsequent payment. Using the same information, prepare the same journal entries assuming the note was b. discounted.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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![a.
b.
6. A company issue a note to a bank to borrow money. They borrowed $10,000 for 4 months (120
days) at 12%.
a. Prepare the journal entries for the issue of the note and the subsequent payment.
b. Using the same information, prepare the same journal entries assuming the note was
discounted.
Accounts
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f10230f-de28-4b13-be4f-040d677e1c39%2F8fc1849a-0e8f-4539-82bc-eac99152114c%2F0kns4f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a.
b.
6. A company issue a note to a bank to borrow money. They borrowed $10,000 for 4 months (120
days) at 12%.
a. Prepare the journal entries for the issue of the note and the subsequent payment.
b. Using the same information, prepare the same journal entries assuming the note was
discounted.
Accounts
Debit
Credit
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