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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Entries for Notes Payable
A business issued a 60-day, 10% note for $80,000 to a creditor on account.
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 |
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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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