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A business issued a 60-day, 10% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. a. Accounts Payable    Notes Payable  b. Notes Payable    Interest Expense    Cash

A business issued a 60-day, 10% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. a. Accounts Payable    Notes Payable  b. Notes Payable    Interest Expense    Cash

FINANCIAL ACCOUNTING
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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Entries for Notes Payable

A business issued a 60-day, 10% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year.

If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar.

a. Accounts Payable 
  Notes Payable 
b. Notes Payable 
  Interest Expense 
  Cash 
pig Operating Room A x p Nursing Attendant x U Administrative Ass X x M Inbox (41) - kkem x * CengageNOWv2| x b My Questions | ba x + Content A https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false K E Apps H Microsoft account |. Blackboard Learn H Log In or Register . S my.csudh.edu CSU. O myCB A Adaptive Math | Ad. O New In - Honeybum . Registrations ab MYGBCLAIM >> Homework: Chapter 10 еВook eBook Show Me How Entries for Notes Payable 1. EX.10.04.ALGO A business issued a 60-day, 10% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. a. Accounts Payable v 80,000 V Notes Payable v 80,000 b. Notes Payable v 80,000 V Interest Expense v 13,333 X Cash v 13,334 X Feedback V Check My Work Why is the company issuing the note? What type of note is being issued (interest-bearing or discounted)? How much will the company owe on the maturity date? On the maturity date, the debtor must repay the face amount of the note, plus interest. Interest is computed by multiplying the face amount with the interest rate and the time period. Check My Work roaress: 111 iteme 2:37 PM P Type here to search O G 4) 1/29/2021 20
Transcribed Image Text:pig Operating Room A x p Nursing Attendant x U Administrative Ass X x M Inbox (41) - kkem x * CengageNOWv2| x b My Questions | ba x + Content A https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false K E Apps H Microsoft account |. Blackboard Learn H Log In or Register . S my.csudh.edu CSU. O myCB A Adaptive Math | Ad. O New In - Honeybum . Registrations ab MYGBCLAIM >> Homework: Chapter 10 еВook eBook Show Me How Entries for Notes Payable 1. EX.10.04.ALGO A business issued a 60-day, 10% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. a. Accounts Payable v 80,000 V Notes Payable v 80,000 b. Notes Payable v 80,000 V Interest Expense v 13,333 X Cash v 13,334 X Feedback V Check My Work Why is the company issuing the note? What type of note is being issued (interest-bearing or discounted)? How much will the company owe on the maturity date? On the maturity date, the debtor must repay the face amount of the note, plus interest. Interest is computed by multiplying the face amount with the interest rate and the time period. Check My Work roaress: 111 iteme 2:37 PM P Type here to search O G 4) 1/29/2021 20
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