Borrowed $5,000 cash from the bank, giving a 60-day non-interest-bearing note. T July 15 note is discounted 8% by the bank. Sept. 13 Paid the $5,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20-- Jul. 15 4 5 Sept. 13 5 6. 8. 8. 6.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Journal Entries (Note Issued for Bank Loan)
Borrowed $5,000 cash from the bank, giving a 60-day non-interest-bearing note. T
July 15
note is discounted 8% by the bank.
Sept. 13 Paid the $5,000 note, recognizing the discount as interest expense.
Prepare general journal entries for the transactions. Assume 360 days in a year.
Page: 1
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
NO.
REF.
20--
Jul. 15
2
2
3
3
4
4
5 Sept. 13
6
6
7
7
8.
8
9.
Transcribed Image Text:Journal Entries (Note Issued for Bank Loan) Borrowed $5,000 cash from the bank, giving a 60-day non-interest-bearing note. T July 15 note is discounted 8% by the bank. Sept. 13 Paid the $5,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Jul. 15 2 2 3 3 4 4 5 Sept. 13 6 6 7 7 8. 8 9.
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