View transaction listJournal entry worksheet2Transactionf-23Record entry5Notes payableInterest expenseInterest payableCashIn March, paid the entire amount of the note on its March 1 due date, usingproceeds from a February issuance of $17.5 million of 10-year bonds at facevalue, along with other available cash. Record the payment of the notespayable.Note: Enter debits before credits.General Journal6Clear entry78Debit20,000,000CreditView general journal Camden Biotechnology began operations in September 2024. The following selectedtransactions relate to liabilities of the company for September 2024 through March 2025.Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024On September 5, opened checking accounts at Second Commercial Bank and negotiated ashort-term line of credit of up to $23,000,000 at the bank's prime rate (9.5% at the time).The company will pay no commitment fees. On October 1, borrowed $20 million cash fromSecond Commercial Bank under the line of credit and issued a five-month promissory note.Interest at the prime rate of 9% was payable at maturity. Management planned to issue 10 -year bonds in February to repay the note. Received $1,800 of refundable deposits inDecember for reusable containers used to transport and store chemical - based products. Forthe September-December period, sales on account totaled $4,740,000. The state sales taxrate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the manyindividual sales transactions for the period.) Recorded the adjusting entry for accrued interest.2025 In March, paid the entire amount of the note on its March 1 due date, using proceedsfrom a February issuance of $17.5 million of 10-year bonds at face value, along with otheravailable cash. The storage containers covered by refundable deposits are expected to bereturned during the first nine months of the year. Half of the containers were returned inMarch 2025.

Notes payable = $20,000,000Interest rate = 9% per annum2024 interest (3 months) [Recorded as…

In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. Record the payment of the notes payable. Note: Enter debits before credits. Transaction 1-2 General Journal Notes payable Interest expense Interest payable Cash Record entry Clear entry Debit 20,000,000 Credit View general journal

In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. Record the payment of the notes payable. Note: Enter debits before credits. Transaction 1-2 General Journal Notes payable Interest expense Interest payable Cash Record entry Clear entry Debit 20,000,000 Credit View general journal

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 60-day note for $39,000 to a bank. The note was discounted at 6%. Assume a 360 days in a 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 your answers to one decimal place. 000 000 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. E A A
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