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July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 597 A WN 2 3 4 6 DATE 8 20-- Jul. 15 Cash ACCOUNT TITLE 5 Sept. 13 Notes Payable Interest Expense Cash Discount on Notes Payable Discount on Notes Payable Notes Payable ✓ DOC. POST. NO. REF. DEBIT 1,000 0 X CREDIT 0 0 1,000 0 1 ✓ 2 3 5 X 8

July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 597 A WN 2 3 4 6 DATE 8 20-- Jul. 15 Cash ACCOUNT TITLE 5 Sept. 13 Notes Payable Interest Expense Cash Discount on Notes Payable Discount on Notes Payable Notes Payable ✓ DOC. POST. NO. REF. DEBIT 1,000 0 X CREDIT 0 0 1,000 0 1 ✓ 2 3 5 X 8

FINANCIAL ACCOUNTING
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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July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by the bank. Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 WN 2 3 4 7 00 DATE 8 20-- Jul. 15 Cash 5 Sept. 13 Notes Payable 6 Interest Expense ✓ Discount on Notes Payable ACCOUNT TITLE ✓ Discount on Notes Payable Notes Payable Cash ✓ DOC. POST. NO. REF. DEBIT 1,000 ✓ 0 X 0 CREDIT 0 ✓ 10 ✓ 1 2 1,000 ✔ 3 m tin 4 5 ✓ 6 7 X 8
Transcribed Image Text:July 15 Borrowed $1,000 cash from the bank, giving a 60-day non-interest-bearing note. The note is discounted 6% by the bank. Sept. 13 Paid the $1,000 note, recognizing the discount as interest expense. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 1 WN 2 3 4 7 00 DATE 8 20-- Jul. 15 Cash 5 Sept. 13 Notes Payable 6 Interest Expense ✓ Discount on Notes Payable ACCOUNT TITLE ✓ Discount on Notes Payable Notes Payable Cash ✓ DOC. POST. NO. REF. DEBIT 1,000 ✓ 0 X 0 CREDIT 0 ✓ 10 ✓ 1 2 1,000 ✔ 3 m tin 4 5 ✓ 6 7 X 8
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