**Entries for Discounting Notes Payable**Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.Assume a 360-day year. If an amount box does not require an entry, leave it blank.**a. Journalize Ramsey’s entries to record:**1. **The issuance of the note.**2. **The payment of the note at maturity.**1. - [Dropdown: Select account] - [Text box for debit] - [Text box for credit] - [Dropdown: Select account] - [Text box for debit] - [Text box for credit]2. - [Dropdown: Select account] - [Text box for debit] - [Text box for credit] - [Dropdown: Select account] - [Text box for debit] - [Text box for credit]**b. Journalize Buckner’s entries to record:**1. **The receipt of the note.**2. **The receipt of the payment of the note at maturity.**1. - [Dropdown: Select account] - [Text box for debit] - [Text box for credit] - [Dropdown: Select account] - [Text box for debit] - [Text box for credit]2. - [Dropdown: Select account] - [Text box for debit] - [Text box for credit] - [Dropdown: Select account] - [Text box for debit] - [Text box for credit]

Solution:- a) Journalize Ramsey’s entries to record as follows under:- Working note:- Interest Expenses = ($800,000 x 45/360 x 7%)Date Account Titles and Explanations Debit Credit Ramsey Company Jan-01 Merchandise Inventory $793,000.00 Interest Expenses (800000 x 45/360 x 7%) $7,000.00 Notes Payable $800,000.00 Feb-14 Notes Payable $800,000.00 Cash $800,000.00 B) Journalizing Buckner’s entries to record as follows under:- Date Account Titles and Explanations Debit Credit Jan-01 Notes Receivables $800,000.00 To Sales $793,000.00 To Interest Revenue $7,000.00 Feb-14 Cash $800,000.00 To Notes Receivables $800,000.00 I hope helpful to you.. If you are satisfied.. Support me.. Thank you..

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Entries for Discounting Notes Payable Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at Assume a 360-day year. If an amount box does not require an entry, leave it blank. a. Journalize Ramsey's entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Buckner's entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1.

Entries for Discounting Notes Payable Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at Assume a 360-day year. If an amount box does not require an entry, leave it blank. a. Journalize Ramsey's entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Buckner's entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1.

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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