Entries for Discounted Note PayableA business issued a 90-day note for $57,000 to a bank. The note was discounted at 6%. Assume a 360-day year.a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round to one decimal place. fill in the blank c68ddb02d07e078_2fill in the blank c68ddb02d07e078_3 fill in the blank c68ddb02d07e078_5fill in the blank c68ddb02d07e078_6 fill in the blank c68ddb02d07e078_8fill in the blank c68ddb02d07e078_9b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. fill in the blank 9fbf4a07707ffe0_2fill in the blank 9fbf4a07707ffe0_3 fill in the blank 9fbf4a07707ffe0_5fill in the blank 9fbf4a07707ffe0_6

Interest expense = Face value of Notes x rate of discount x No. of days /360 =57000*6%*90/360 = $855a. Date Account Titles Debit Credit Accounts Payable $56,145 Interest expense $855 Notes Payable $57,000 b. Date Account Titles Debit Credit Notes Payable $57,000 Cash $57,000

Answered: A business issued a 90-day note for…

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 Discounted Note Payable

A business issued a 90-day note for $57,000 to a bank. The note was discounted at 6%. Assume a 360-day year.

a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round to one decimal place.

		fill in the blank c68ddb02d07e078_2	fill in the blank c68ddb02d07e078_3
		fill in the blank c68ddb02d07e078_5	fill in the blank c68ddb02d07e078_6
		fill in the blank c68ddb02d07e078_8	fill in the blank c68ddb02d07e078_9

b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

		fill in the blank 9fbf4a07707ffe0_2	fill in the blank 9fbf4a07707ffe0_3
		fill in the blank 9fbf4a07707ffe0_5	fill in the blank 9fbf4a07707ffe0_6

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