DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8 percent, 30-day note for the balance of $37,440. Additional Data Howard pays all the company’s notes payable on time. Darnell Jones defaults on his $40,320 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $54. Henry Thomas pays his note on time. Alfred Herron pays his note on time.
DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. 11 A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. 22 Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. 25 Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 8 percent, 30-day note for the balance of $37,440. Additional Data Howard pays all the company’s notes payable on time. Darnell Jones defaults on his $40,320 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $54. Henry Thomas pays his note on time. Alfred Herron pays his note on time.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| DATE | TRANSACTIONS | ||
| 20X1 | |||
| Mar. | 4 | Mr. Howard borrows $34,560 from the bank on a note payable for the business. Terms of the note are 10 percent interest for 45 days. | |
| 11 | A 90-day $47,520 note payable to the bank is discounted at a rate of 8 percent. | ||
| 22 | Sold a car to Darnell Jones for $40,320 on a 75-day note receivable, bearing interest at 7 percent. | ||
| 23 | Discounted the Jones note with the bank. The bank charges a discount rate of 10 percent. | ||
| 25 | Sold a car for $48,960 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance. | ||
| 28 | Alfred Herron's |
Additional Data
- Howard pays all the company’s notes payable on time.
- Darnell Jones defaults on his $40,320 note and the bank charges the company’s checking account for the maturity value of the note and a service fee of $54.
- Henry Thomas pays his note on time.
- Alfred Herron pays his note on time.
Record discount of note payable on the table
| date | general journal | debit | credit |
| mar. 11, 20X1 | |||
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